Fair Entitlements Guarantee (Vertical 4 Pty Ltd and Abacus 49 Pty Ltd in Administration) Declaration 2025

Administered by Department of Employment and Workplace Relations

Legislation au F2025L01182 In force Legislative Instrument

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FAIR ENTITLEMENTS GUARANTEE (VERTICAL 4 PTY LTD AND ABACUS 49 PTY LTD 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:

  • Vertical 4 Pty Ltd (Administrators Appointed) A.C.N. 603 513 604
  • Abacus 49 Pty Ltd (Administrators Appointed) A.C.N. 623 000 760

which are entities in 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 both Vertical 4 Pty Ltd (Administrators Appointed) A.C.N. 603 513 604 and Abacus 49 Pty Ltd (Administrators Appointed) A.C.N. 623 000 760 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 Vertical 4 Pty Ltd (Administrators Appointed) A.C.N. 603 513 604 and Abacus 49 Pty Ltd (Administrators Appointed) A.C.N. 623 000 760 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 practitioner responsible for the administration of both Vertical 4 Pty Ltd (Administrators Appointed) A.C.N. 603 513 604 and Abacus 49 Pty Ltd (Administrators Appointed) A.C.N. 623 000 760.

 

REGULATion IMPACT STATEMENT

 

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 and is subject to disallowance.

 

The declaration 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 (Vertical 4 Pty Ltd and Abacus 49 Pty Ltd in Administration) Declaration 2025

 

The Fair Entitlements Guarantee (Vertical 4 Pty Ltd and Abacus 49 Pty Ltd 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 Disallowable 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:

 

  • Vertical 4 Pty Ltd (Administrators Appointed) A.C.N. 603 513 604
  • Abacus 49 Pty Ltd (Administrators Appointed) A.C.N. 623 000 760

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 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 both Vertical 4 Pty Ltd (Administrators Appointed) A.C.N. 603 513 604  and Abacus 49 Pty Ltd (Administrators Appointed) A.C.N. 623 000 760 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 Vertical 4 Pty Ltd (Administrators Appointed) A.C.N. 603 513 604 and Abacus 49 Pty Ltd (Administrators Appointed) A.C.N. 623 000 760 to make a claim under the Act and have their claims for an advance assessed and paid in accordance with the Act.

In the absence of this declaration former employees of Vertical 4 Pty Ltd (Administrators Appointed) A.C.N. 603 513 604 and Abacus 49 Pty Ltd (Administrators Appointed) A.C.N. 623 000 760 would not satisfy a condition of eligibility for an advance prescribed by subsection 10(1) of the Act, specifically paragraph 10(1)(h) which requires an effective claim to have been made under section 14. Paragraph 14(2)(b) of the Act requires that an effective claim is one that is made before the end of 12 months after the later of the following events (a) an insolvency event happens to the employer; (b) the person’s employment by the employer ends. Relevantly, ‘insolvency event’ as defined by subsection 5(a) of the Act provides that an insolvency event happens to an employer when a liquidator is appointed. This means that in the absence of this declaration paragraph 14(2)(a) of the Act would not be satisfied as one of the required events, the ‘insolvency event’ will not have occurred.

 

Human rights implications

 

Article 7 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 the enjoyment of just and favourable conditions of work’. The Committee on Economic, Social and Cultural Rights has stated that ‘Workers should not have to pay back part of their wages for work already performed and should receive all wages and benefits legally due upon termination of a contract or in the event of the bankruptcy or judicial liquidation of the employer.’[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 ensures that employees’ unpaid entitlements are met when their employer enters liquidation or bankruptcy to the extent provided for in the Act.

 

This declaration expands the operation of the Act to an employer in administration under the Corporations Act. The effect is advances of unpaid employment entitlements can be made to eligible former employees. This supports the right to the enjoyment of just and favourable conditions of work by providing for benefits legally due upon termination in circumstances where the employer is expected to enter liquidation.

 

Article 9 of 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.[2]

 

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. 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.

 

 

The Hon Amanda Rishworth MP

 

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 (Vertical 4 Pty Ltd and Abacus 49 Pty Ltd 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 Vertical 4 Pty Ltd (Administrators Appointed) A.C.N 603 513 604 and Abacus 49 Pty Ltd (Administrators Appointed) A.C.N. 623 000 760 which are entities in administration under the Corporations Act 2001.

 

 

[1] UN Committee on Economic, Social and Cultural Rights (CESCR), General comment No. 23 (2016) on the right to just and favourable conditions of work (article 7 of the International Covenant on Economic, Social and Cultural Rights), E/C.12/GC/23, 7 April 2016, https://www.refworld.org/legal/general/cescr/2016/en/122360

 

[2] 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 (Vertical 4 Pty Ltd and Abacus 49 Pty Ltd in Administration) Declaration 2025, enacted under the Fair Entitlements Guarantee Act 2012, addresses the gap in the application of the Act to employees whose employers are under administration rather than in liquidation or bankruptcy. This legislation was enacted by the Australian Parliament with the policy objective of ensuring that employees receive financial assistance for unpaid entitlements when their employer faces insolvency, even if the employer is under administration. The declaration issued by the Minister for Employment and Workplace Relations under section 49 of the Act aims to extend the scope of the Fair Entitlements Guarantee Act to include former employees of Vertical 4 Pty Ltd and Abacus 49 Pty Ltd, both of which are entities in administration under the Corporations Act 2001. The declaration ensures that these employees can claim unpaid employment entitlements, thereby providing a safety net in cases of employer insolvency.

Scope and Application

The Fair Entitlements Guarantee (Vertical 4 Pty Ltd and Abacus 49 Pty Ltd in Administration) Declaration 2025 is an instrument made under section 49 of the Fair Entitlements Guarantee Act 2012, which aims to extend the application of the Act to former employees of Vertical 4 Pty Ltd and Abacus 49 Pty Ltd, both of which are entities under administration under Part 5.3A of the Corporations Act 2001. Typically, the Act applies to employees of companies that are insolvent or bankrupt, providing financial assistance for unpaid work done. However, the Act does not apply to employees of companies in administration under the Corporations Act. This declaration serves to bridge that gap by enabling former employees of the specified companies to claim under the Act as if an insolvency event, defined as the appointment of a liquidator, had occurred. This ensures that these former employees can receive their unpaid entitlements, in line with the Act's purpose of providing a safety net for workers affected by their employer's insolvency. The declaration operates on the basis that it is practicable to administer the Act in relation to the specified employers and that the creditors are expected to resolve to wind up the employer. The Minister for Employment and Workplace Relations has consulted with the relevant insolvency practitioner to satisfy these conditions. The declaration is compatible with human rights, particularly the right to just and favourable conditions of work and the right to social security, as it ensures that workers receive their legally due benefits even in circumstances of employer insolvency. The instrument takes effect on the day after it is registered on the Federal Register of Legislation and is subject to disallowance, but it is not exempt from sunsetting under the Legislation Act 2003.

Key Provisions

The Fair Entitlements Guarantee (Vertical 4 Pty Ltd and Abacus 49 Pty Ltd in Administration) Declaration 2025, under section 49 of the Fair Entitlements Guarantee Act 2012, declares that the Act applies to former employees of Vertical 4 Pty Ltd (A.C.N. 603 513 604) and Abacus 49 Pty Ltd (A.C.N. 623 000 760), which are entities in administration under Part 5.3A of the Corporations Act 2001. This declaration ensures that former employees of these companies can make claims for unpaid employment entitlements. Section 4 of the Declaration explicitly states that the Fair Entitlements Guarantee Act 2012 will apply to these former employees as if the administrator were a liquidator appointed when the administrator was appointed. This means that former employees can now claim for any unpaid entitlements under the Act. The obligations imposed on the relevant parties under this Declaration are primarily on the Minister for Employment and Workplace Relations, who must be satisfied that the creditors of Vertical 4 Pty Ltd and Abacus 49 Pty Ltd are expected to resolve at a meeting convened under section 439A of the Corporations Act that the employer be wound up. Additionally, the Minister must be satisfied that it will be practicable to administer the Act as it will apply because of the declaration in relation to the specified employer. This includes ensuring that former employees can make claims and that the Act can be administered effectively. Breach of the provisions of the Fair Entitlements Guarantee Act 2012 or the Fair Entitlements Guarantee (Vertical 4 Pty Ltd and Abacus 49 Pty Ltd in Administration) Declaration 2025 could lead to civil or criminal consequences. While the Act itself does not specify maximum penalties for breach, penalties could be imposed under other relevant legislation, such as the Corporations Act 2001. These could include fines or imprisonment for serious breaches, particularly if there is intent to deceive or mislead regarding the administration of the Act. The seriousness of the consequences would depend on the nature and extent of the breach, as well as any associated intent to defraud or mislead.

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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.