True employer status and recoveries under the Fair Entitlements Guarantee: lessons from Mosaic Brands

Jonathon McRostie and Jackson Macaulay of Clayton Utz analyse the NSW Supreme Court’s decision in Mosaic Brands, where the Court found that the listed parent (not its assetless subsidiary) was the true employer of 2,800 staff, ensuring that the Department of Employment and Workplace Relations, as subrogee under the Fair Entitlements Guarantee scheme, could recover over $21 million in priority to secured creditors.

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