The requirements to pay super have been clarified by the Full Court of the Federal Court of Australia, but the position is not easy to understand.
The Chief Justice has said that the requirement in the Superannuation Guarantee Act (GSA) is, “not intended to give superannuation benefits for the total salary” but instead is, “based on standard hours at ordinary rates”.
A recent case involving Bluescope Steel, found that the employer was not required to make mandatory contributions for additional hours and public holidays worked by employees where those employees were being paid an annualised aggregated salary. Whether the AWU will apply for permission to appeal the decision is not yet known.
Super requirements are complex, and the MTA is here to assist members in complying with the obligations established under the GSA. It is important that you understand super entitlements to ensure you avoid a potentially costly battle with employees.
Contact the MTA’s Workplace Relations team by clicking here if you need any help in navigating superannuation requirements for your employees.