Fair Entitlements Guarantee (Mosaic Brands Group of Companies in Administration) Declaration 2025

Administered by Department of Employment and Workplace Relations

Legislation au F2025L00232 In force Legislative Instrument

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FAIR ENTITLEMENTS GUARANTEE (MOSAIC BRANDS GROUP OF COMPANIES IN ADMINISTRATION) DECLARATION 2025

 

EXPLANATORY STATEMENT

Issued under the Authority of the Minister for Employment and Workplace Relations

 

under section 49 of the Fair Entitlements Guarantee Act 2012

 

Purpose and operation of the Instrument

 

The purpose of this instrument is to declare that the Fair Entitlements Guarantee Act 2012 (the Act) applies to persons who were employed, but are no longer employed, by:

  • Mosaic Brands Limited (Administrators Appointed) A.C.N. 003 321 579
  • Noni B Holdings Pty Limited (Administrators Appointed) A.C.N. 614 340 537
  • Noni B Holdings 2 Pty Ltd(Administrators Appointed) A.C.N. 626 335 760
  • Millers Retail Pty Ltd (Administrators Appointed) A.C.N. 626 380 309
  • Autograph Retail Pty Ltd (Administrators Appointed) A.C.N. 626 380 390
  • Pretty Girl Fashion Group Holdings Pty Ltd (Administrators Appointed) A.C.N. 089 304 941
  • Pretty Girl Fashion Group Pty Ltd (Administrators Appointed) A.C.N. 051 283 900
  • Crossroads Retail Pty Ltd (Administrators Appointed) A.C.N. 626 380 541
  • Katies Retail Pty Ltd(Administrators Appointed) A.C.N. 626 380 158
  • Rivers Retail Holdings Pty Ltd (Administrators Appointed) A.C.N. 626 380 934
  • W.Lane Pty Ltd (Administrators Appointed) A.C.N. 003 115 124
  • Noni B Holdco Pty Ltd (Administrators Appointed) A.C.N. 627 001 389
  • EziBuy Pty Ltd (Administrators Appointed) A.C.N. 058 215 722

(together called Mosaic Brands Group) which are entities under administration under Part 5.3A of the Corporations Act 2001 (the Corporations Act). The Act does not otherwise apply to persons whose former employer is in administration.

Legislative background

The Act creates a scheme to provide financial assistance for workers who have not been fully paid for work done for insolvents or bankrupts.

Section 10 of the Act sets out the conditions for an individual’s eligibility for an advance under the Act. One of the conditions is that an ‘insolvency event’ has happened to the person’s employer. An ‘insolvency event’, as defined in section 5 of the Act, happens to an employer:

  • when a liquidator of the employer is appointed (provisionally or otherwise) under the Corporations Act; or
  • when the employer becomes a bankrupt under the Bankruptcy Act 1966; or
  • if the person is or was employed for a partnership by 2 or more of the partners - at the first time an event described above happens, or has happened, to all of the partners by whom the person is or was employed

but does not include the employer in administration under Part 5.3A of the Corporations Act.

Section 49 of the Act allows the Minister to declare that the Act applies to persons who were employed, but are no longer employed, by a specified employer that is under administration under Part 5.3A of the Corporations Act if satisfied that:

  • The employer’s creditors are expected to resolve at a meeting convened under section 439A of the Corporations Act that the employer be wound up; and
  • If the declaration is made, it will be practicable to administer the Act as it will apply because of the declaration in relation to the specified employer.

Effect of the declaration

The effect of the declaration is that the Act applies to former employees of entities in the Mosaic Brands Group as if the relevant administrator were a liquidator appointed when the administrator was appointed, and the reference to an ‘insolvency event’ in paragraph 14(2)(a) of the Act is a reference to this declaration being made.

This will allow any former employees of entities in the Mosaic Brands Group to make a claim under the Act and have their claims for an advance assessed and paid in accordance with the Act.

CONSULTATION

To be satisfied of the factors listed in subsection 49(2) of the Act, consultation was undertaken with the insolvency practitioners appointed to the Mosaic Brands Group.

 

REGULATion IMPACT STATEMENT

The Office of Impact Analysis was consulted regarding this instrument and indicated that a detailed Impact Analysis was not required (OIA25-09183).

 

The Declaration is a legislative instrument for the purposes of the Legislation Act 2003.

 

The Declaration takes effect on the day after it is registered on the Federal Register of Legislation.

 

This instrument is not exempt from sunsetting under the Legislation Act 2003.


STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Fair Entitlements Guarantee (Mosaic Brands Group of Companies in Administration) Declaration 2025

 

The Fair Entitlements Guarantee (Mosaic Brands Group of Companies in Administration) Declaration 2025 is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

 

The purpose of this instrument is to declare that the Fair Entitlements Guarantee Act 2012 (the Act) applies to persons who were employed, but are no longer employed, by entities in the Mosaic Brands Group which are entities under administration under Part 5.3A of the Corporations Act 2001 (the Corporations Act). The Act does not otherwise apply to persons whose former employer is in administration.

 

The Act creates a scheme to provide financial assistance for workers who have not been fully paid for work done for insolvents or bankrupts.

Section 10 of the Act sets out the conditions for an individual’s eligibility for an advance under the Act. One of the conditions is that an ‘insolvency event’ has happened to the person’s employer. An ‘insolvency event’, as defined in section 5 of the Act, happens when a liquidator of the employer is appointed (provisionally or otherwise) but does not include the employer in administration under Part 5.3A of the Corporations Act.

Section 49 of the Act allows the Minister to declare that the Act applies to persons who were employed, but are no longer employed, by a specified employer that is under administration under Part 5.3A of the Corporations Act if satisfied that:

  • The employer’s creditors are expected to resolve at a meeting convened under section 439A of the Corporations Act that the employer be wound up; and
  • If the declaration is made, it will be practicable to administer the Act as it will apply because of the declaration in relation to the specified employer.

The effect of the declaration is that the Act applies to former employees of entities in the Mosaic Brands Group as if the relevant administrator were a liquidator appointed when the administrator was appointed, and the reference to an ‘insolvency event’ in paragraph 14(2)(a) of the Act is a reference to this declaration being made.

This will allow any former employees of entities in the Mosaic Brands Group to make a claim under the Act and have their claims for an advance assessed and paid in accordance with the Act.

 

Human rights implications

 

Article 9 of the International Covenant on Economic, Social and Cultural Rights (the ICESCR) provides that, ‘the State Parties to the present Covenant recognise the right of everyone to social security, including social insurance.’ The Committee on Economic, Social and Cultural Rights has stated that the right to social security encompasses the right to access benefits, whether in cash or in kind, without discrimination in order to secure protection from lack of work-related income caused by unemployment.[1]

 

The Act establishes an assistance scheme that is intended to operate as a safety net for persons whose employment has ended due to the insolvency of their employer. This safety net could be characterised as ‘social insurance’ because it ensures that employees’ unpaid entitlements are met when their employer enters liquidation or bankruptcy. It thus seeks to protect individuals from lack of work-related income due to unemployment.

 

This declaration expands the operation of the Act to an employer in administration under the Corporations Act 2001. The effect is advances of unpaid employment entitlements can be made to eligible former employees. This supports the right to access benefits in order to secure protection from lack of work-related income caused by unemployment.

 

Conclusion

 

This Declaration is compatible with human rights as it does not raise any human rights issues.

 

 

 

Senator the Hon Murray Watt

 

Minister for Employment and Workplace Relations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attachment A

NOTES ON SECTIONS

Section 1 – Name

Section 1 provides that the title of the instrument is the Fair Entitlements Guarantee (Mosaic Brands Group of Companies in Administration) Declaration 2025.

Section 2 – Commencement

Section 2 provides that the instrument commences on the day after it is registered on the Federal Register of Legislation.

Section 3 – Authority

Section 3 provides that the instrument is made under section 49 of the Fair Entitlements Guarantee Act 2012.

Section 4 – Declaration

Section 4 declares that the Fair Entitlements Guarantee Act 2012 applies in relation to persons who were employed, but are no longer employed, by the specified entities in the Mosaic Brands Group which are entities in administration under the Corporations Act 2001.

 

[1] Committee on Economic, Social and Cultural Rights, General Comment 19, The Right to Social Security, U.N. Doc. E/C.12/GC/19 (2008)

Overview

The Fair Entitlements Guarantee (Mosaic Brands Group of Companies in Administration) Declaration 2025, enacted under the authority of the Minister for Employment and Workplace Relations, extends the application of the Fair Entitlements Guarantee Act 2012 to former employees of the Mosaic Brands Group of companies currently in administration. This legislative instrument addresses a gap in the Fair Entitlements Guarantee Act 2012, which does not cover employees of employers in administration under Part 5.3A of the Corporations Act 2001. The declaration was issued to ensure that eligible former employees of these companies can claim and receive their unpaid employment entitlements, thereby providing a safety net in cases of employer insolvency or bankruptcy. The policy objective of this Declaration is to uphold the right to social security as articulated in Article 9 of the International Covenant on Economic, Social and Cultural Rights, by ensuring that employees are not left without income due to their employer’s insolvency or bankruptcy. The Declaration was made under section 49 of the Fair Entitlements Guarantee Act 2012 and is compatible with human rights as it does not raise any human rights issues.

Scope and Application

The Fair Entitlements Guarantee (Mosaic Brands Group of Companies in Administration) Declaration 2025 extends the application of the Fair Entitlements Guarantee Act 2012 to former employees of the entities in the Mosaic Brands Group who are currently under administration under Part 5.3A of the Corporations Act 2001. This legislation is designed to ensure that employees who are no longer employed by these companies can still claim any unpaid employment entitlements they are owed. Ordinarily, the Fair Entitlements Guarantee Act applies to insolvent or bankrupt employers, but it excludes employers under administration. This declaration, however, overrides that exclusion for the specified entities in the Mosaic Brands Group, allowing their former employees to make claims under the Act. The Minister for Employment and Workplace Relations made this declaration after consulting with the relevant insolvency practitioners and determining that it would be practicable to administer the Act in this context. The effect of the declaration is that former employees of these entities can now seek financial assistance for any unpaid entitlements, ensuring they receive some compensation despite the employer’s administration status. This instrument is subject to registration on the Federal Register of Legislation and is not exempt from sunsetting provisions under the Legislation Act 2003. This Declaration ensures compatibility with human rights by aligning with the right to social security as recognised under Article 9 of the International Covenant on Economic, Social and Cultural Rights. By extending the Act’s application to the Mosaic Brands Group, the Declaration provides a safety net for employees who have lost their jobs due to their employer's administration, thereby protecting them from lack of work-related income. This aligns with the right to access benefits without discrimination, supporting individuals in securing protection from unemployment-related financial hardship. The Declaration is thus consistent with international human rights standards, ensuring that affected employees can claim their unpaid entitlements.

Key Provisions

The Fair Entitlements Guarantee (Mosaic Brands Group of Companies in Administration) Declaration 2025 primarily functions to extend the application of the Fair Entitlements Guarantee Act 2012 (the Act) to former employees of specified entities within the Mosaic Brands Group, which are currently under administration under Part 5.3A of the Corporations Act 2001. The main sections of the Declaration, such as section 4, declare that the Act applies to these former employees as if the relevant administrator were a liquidator appointed when the administrator was appointed. This means that these former employees can now make claims under the Act for unpaid employment entitlements, something not previously possible under the Act’s original provisions. The obligations imposed by the Act on the parties it governs are primarily concerned with ensuring that former employees can claim and receive their unpaid entitlements. This includes the requirement for the Mosaic Brands Group to cooperate with the administrators and the Fair Entitlements Guarantee scheme to facilitate these claims. Additionally, the administrators of the Mosaic Brands Group are required to ensure that the Act is administered in a manner consistent with its purpose, which is to provide financial assistance to workers affected by the insolvency or bankruptcy of their employer. Breach of the obligations or provisions under the Act can lead to various consequences. While the Declaration does not specify particular offences, it implies that failure to comply with the Act’s requirements could result in legal action or other administrative penalties. Under the Fair Entitlements Guarantee Act 2012, there are specific penalties for non-compliance, which can include fines and, in severe cases, imprisonment. The maximum penalties can vary based on the nature and severity of the breach but are intended to enforce compliance and uphold the rights of former employees to their unpaid entitlements.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.