The hidden consequences of unpaid super

Don’t trust that your employer is paying your superannuation. Make sure.

When employers delay, underpay or fail to pay superannuation, they are not only compromising your financial security, they are also compromising your insurance cover.

If the worst happens and you suffer an illness, injury or death without up-to-date super payments, you and your loved ones could be left without adequate insurance protection.

You may be eligible to claim any unpaid wages and superannuation contributions from your employer, and if you miss out on insurance for death or TPD because of your employer’s failure to pay properly, you may be able to seek compensation from your employer for the value of that insurance.

Understanding your rights and the steps you can take to protect them is important, so seek advice from a legal professional if you find yourself in this situation and ensure you receive the compensation you are entitled to.

What should you do if your employer fails to make superannuation contributions?

From 1 January 2024, employees covered by the NES can take court action under the Fair Work Act to recover any unpaid super, unless the ATO has already commenced proceedings in relation to that super.

These changes make it easier for employees to pursue employers for any loss of insurance, ensure timely superannuation payments, and seek legal action if employers don't comply.

If your employer stops paying you super, document all the unpaid amounts, including specific details such as the period they cover and the amount owed. You should also inform your employer directly about the unpaid super because they might not be aware of the outstanding payments and can take steps to rectify them.

You should monitor your superannuation activity by checking your super statements, which can often be accessible via an app from your Super Fund. This will ensure that any payments made are accounted for, and you should keep up to date with any correspondence from your employer so you don’t miss updates.

Hayriye Uluca, Principal Lawyer at MB, says that the consequences of not being paid super can be more dire than having less money in retirement.

“Unpaid superannuation payments can leave you vulnerable when you need it the most. If you can no longer work due to an illness or injury, the financial burden can be overwhelming. Ensuring your superannuation payments are up to date is crucial for protecting your future and providing you and your loved ones with peace of mind during these challenging times,” says Hayriye.

We’ve helped clients receive compensation for unpaid super. By documenting all unpaid amounts and seeking legal advice, employees can take the necessary steps to ensure they receive the compensation they are entitled to.

We’re here to help

Our experienced superannuation insurance lawyers have worked on hundreds of cases and helped many clients reclaim their unpaid superannuation payments. We can help you understand what legal options are available and provide expert advice and support to get the outcome you deserve.

Strict time limits can apply, so it’s important to act quickly.

Contact us today to find out how we can help you.