Underpaid Super Sized Settlement
Updated 26/06/2020
Superannuation Guarantee payments will be repaid on shift worker annual leave loading under our Victorian Public Service Agreement. CPSU and the State of Victoria have been in negotiations for 18 months after a member raised with the union questions about the accuracy of superannuation guarantee payments being made to him as a shift worker.Upon investigation it was clear the ATO had ruled in 2009 that annual leave loading related to shift allowances were to be treated as Ordinary Time Earnings (OTE) for the purposes of payment of superannuation guarantee.
CPSU was able to ascertain that the payments required by the ATO ruling had not been made by Department of Justice and Community Safety and Department of Health and Human Services.
CPSU wrote to the Treasurer and made a claim for this underpayment to be paid to all eligible shift workers with interest.
CPSU wrote to the Treasurer and made a claim for this underpayment to be paid to all eligible shift workers with interest.
Departments will pay 7 years of backpay for all eligible shift workers who worked between 2009-2020.
We have reached a settlement that will have Departments pay 7 years of SG backpay for all eligible shift workers who worked between 2009-2020.
CPSU explored different means of pursuing this matter and was advised that legally backpayments in court settlements are limited to six years. CPSU has negotiated a settlement with the State of Victoria for payments to go back seven years for shift workers. In addition, members who have their own pay records indicating payments of the shift penalties prior to April 2013 may apply to their employer for the additional SG payments. Equally, if you know of someone who worked with you during this time but have left employ then they may also be eligible to receive the SG underpayments owing.
What happens next?
The two Departments will make all reasonable efforts to conclude this process by 1 September 2020.
Payments will be made through the ATO where required and/or remitted to the relevant employees’ superannuation accounts.
This will include payment of interest as required under Superannuation Guarantee law.
· Are you a shift worker?
· Did you work for DHHS or DJCS between 1 April 2013 and 30 March 2020?
· Did you take annual leave on weekends?
If yes to these questions then you should be eligible for additional superannuation payments.
Departments will write to affected employees in the coming weeks with details.
Superannuation Guarantee payments on ALL Annual Leave Loading from 1 April
Departments have also agreed to make Superannuation Guarantee payments on ALL Annual Leave Loading amounts for the current quarter (from 1 April) and this will be paid when they are due by the end of July this year and for future financial quarters.
The Service Doesn't Happen Without Us.
KAREN BATT
CPSU Victorian Branch Secretary / Federal Secretary
CPSU Victorian Branch Secretary / Federal Secretary
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