Textile workers who lost their jobs when a mill closed are furious that their former employer could be paying the tax office before them.

Around 40 former employees of Givoni Mills lost their jobs when the mill closed its Moe factory and scaled down operations at Sandringham.

Unions claim that the mill entered a voluntary agreement with the Australian Taxation Office to first pay money owed to it.

But a spokesman for the mill said that workers' entitlements were being paid by instalment and they would receive the remainder within three months.

Givoni Mills is still operating and has not gone into liquidation which means workers do not qualify for the Government's employment entitlement support scheme.