Starleaton CEO Ben Eaton had pledged to repay all employee entitlements under a Deed of Company Arrangement (DOCA) approved in March 2024. However, just over a year later, Starleaton has entered liquidation, and entitlements will now be handled through the government’s Fair Entitlements Guarantee (FEG) scheme.

In March 2024, following a vote by creditors to support the DOCA and allow Eaton to remain as CEO and regain control of Starleaton, Eaton was immediately on the front foot and emphatic about what the DOCA would mean for employees.

“Staff will receive 100 per cent of what they are entitled to,” Eaton said emphatically at the time.

Under the DOCA, which then served as the blueprint for the future of the business, Eaton said he would set aside $800,000 of funds to restructure the business for 24 months to help repay staff entitlements of $1,384,325.64.

Just over a year into this process, Eaton has defaulted on the payments of $33,333.33 per month and the company has now been placed into liquidation.

With the company now in liquidation, all remaining staff – including Eaton – have been made redundant.

Employee entitlements will now be paid through the Australian taxpayer FEG scheme, rather than from Eaton’s back pocket.

The FEG scheme can assist employees if there are insufficient realisations in a liquidation and FEG will then stand in the place of employees for any amounts paid.

At the time, Starleaton employee entitlements were estimated to be:

• Wages – $105,445.55 (28 employees)
• Superannuation – $133,396.73) (35 employees)
• Annual leave – $140,899.94 (24 employees)
• Long service leave – $261,715.46 (14 employees)
• Pay in lieu notice – $190,635.36 (27 employees)
• Redundancy – $552,232.60 (26 employees)

The liquidators have now recommended that all employees lodge a claim with FEG for unpaid entitlements – which will be individually calculated in the coming days.

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