British IT Worker Calls Out ‘Unfair’ Exclusion of Temporary Visa Holders from Australia’s Fair Entitlements Guarantee Scheme

Introduction
A British expat living in Australia has criticized what she describes as an “unfair” aspect of the country’s workplace laws after missing out on nearly $40,000 in unpaid wages and entitlements following the sudden liquidation of her employer. Laura Denby, a skilled IT business analyst based in Sydney, was one of several temporary visa holders left without recourse under the federal government’s Fair Entitlements Guarantee (FEG) scheme.

The FEG scheme acts as a safety net for Australian citizens, permanent residents, and a limited number of visa holders, ensuring they receive unpaid wages, redundancy pay, and other benefits if their employer goes bust. However, temporary skilled visa holders like Denby are excluded from this protection.

Details of the Incident
Laura Denby moved to Australia six years ago on a working holiday visa before securing a role at Xam Consulting, a prominent Sydney-based IT firm. After five years with the company, she was actively pursuing permanent residency through a skilled visa application—a process that required sponsorship from her employer.

In September 2024, everything changed when Xam Consulting unexpectedly went into liquidation. With little warning, Denby and approximately 60–100 colleagues were called into a meeting with liquidators, where they learned the company had collapsed. While most employees received support through the FEG scheme, Denby discovered she was ineligible due to her temporary visa status.

“I was gutted,” Denby said. “It just put me in a really financially hard place.” The estimated value of the entitlements she would have received had she been a permanent resident amounted to roughly $40,000.

Impact on Denby’s Life
Despite finding a new job within a month through contacts at her previous company, Denby described the experience as deeply unsettling. Without an income during the interim period, she struggled to meet financial obligations, including her apartment lease. The stress took a toll on her health, leading to a diagnosis of an autoimmune disease.

Beyond the immediate financial setback, the collapse of Xam Consulting also disrupted Denby’s plans for permanent residency. When the company went under, she was forced to withdraw her visa application, pushing her back to the start of an 18-month queue despite having contributed significantly to the Australian economy over the past five years.

Calls for Reform
Motivated by her experience, Denby launched an online petition on Change.org advocating for changes to the FEG scheme to include temporary workers. In the petition, she argues that excluding skilled migrants discriminates against individuals who are already integrated into the workforce and contributing to the economy.

“Migrant workers contribute to Australia’s economy but are excluded from the Fair Entitlements Guarantee (FEG) scheme,” Denby wrote. “If their employer becomes insolvent, they receive no support. This is unfair and needs to change.”

A spokesperson for the Department of Employment and Workplace Relations explained that while migrant workers are entitled to priority payment of owed employee entitlements from the insolvent estate, these funds are often insufficient. Additionally, certain assets may allow them to be paid ahead of secured creditors, though this provides limited relief in cases where the insolvent estate lacks sufficient resources.

Broader Implications
Denby’s case highlights broader issues surrounding workplace protections for temporary visa holders in Australia. As more international talent contributes to key industries such as technology and healthcare, critics argue that current laws fail to adequately safeguard their rights. By excluding temporary workers from critical safety nets like the FEG scheme, the system risks undermining trust among skilled migrants and potentially deterring future talent from choosing Australia as a destination.