Federal government to pay thousands of Aussie Mosaic workers entitlements they were owed by collapsed company

The federal government will grant early access to money and entitlements owed to thousands of employees of a fashion retail giant that has gone bust.

The federal government has guaranteed thousands of Australian workers who were employed by the collapsed Mosaic Brands Group their entitlements.

Mosaic operated 666 retail and online clothing stores nationwide under brand names Millers, Noni B, Rivers, Katies, Autograph, Crossroads, W.Lane and Beme.

It was revealed more than 2800 staff that worked across the business’ Australian and New Zealand stores are owed $22m, which receivers and managers KPMG said would likely be paid in full.

But the federal government has now stepped in to ensure workers receive early access to the Fair Entitlements Guarantee, which will pay out their entitlements.

The federal government has stepped in to ensure thousands of workers who were employed by Mosaic Brands Group receive early access to the Fair Entitlements Guarantee. Picture: NewsWire / Steven Saphore

The government brought forward the timing of when affected workers could access their unpaid entitlements so they would not have to wait several months for the group to be placed into liquidation.

Employment and Workplace Relations Minister Murray WattIt said most of the affected workers were women who worked in part time roles and had caring responsibilities, relying on their wage to survive.

The government’s guarantee program is a safety net scheme that ensures workers receive their entitlements, if their employer becomes insolvent and there is no other avenue to fund money owed to them.

Senator Watt said rather than Mosaic Brand workers having to wait for legal processes to be exhausted, the government wants to give them reassurance they will get their entitlements paid out, by granting early access to the scheme.

Workplace Relations Minister Murray Watt said most Mosaic workers were women who would need their entitlements sooner rather than later. Picture: NewsWire / Martin Ollman

“It won’t solve everything, but it will give a bit more certainty to a group of workers who aren’t highly paid, and have a lot to deal with right now,” he said.

“Fair Entitlements Guarantee is usually activated once a business has gone into liquidation, but the Albanese government recognises that this has been quite a stressful, drawn-out process for a group of workers who depend very heavily on their pay coming in.

“Around Australia approximately 320 stores are still operating – progressively closing down as they run out of stock and employees are then let go.

More than 2800 staff that worked across the Mosaic Brands Group’s Australian and New Zealand stores are owed $22m. Picture: NewsWire / Steven Saphore

“Staff are largely women, many balancing part-time employment with care responsibilities, and highly reliant on their pay, so we want to ensure they have as much certainty as possible around their finances going forward.

“I’m very pleased the Albanese government has stepped in to ensure workers will get their entitlements paid earlier under the guarantee, no matter what happens to the business.”

Eligible workers can claim up to 13 weeks of unpaid wages, unpaid annual leave and long service leave, payment in lieu of notice, and redundancy pay.