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Pay day super payments needed to help ensure workers don’t miss out on insurance
20th Apr 2023
Pay day superannuation payments are needed to help protect workers’ insurance coverage, but lawyers urge the Government to ensure compensation for lost insurance is also considered in current reforms.
“Where an employer fails to make super contributions on time, a worker’s insurance can lapse or never commence because of the employer’s non-payment, leaving them without cover in the case of death or disablement,” said Josh Mennen, lawyer and spokesperson for the Australian Lawyers Alliance (ALA).
“We have seen this occur time and again, especially since the passage of recent legislation such as the Parliament of Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 which triggers automatic cancellation of default insurance where the super account becomes inactive or falls below a balance limit.”
Australian Lawyers Alliance (ALA) members act for claimants of Death, Total Permanent Disability and other default insurances held through workers’ superannuation.
“This form of default insurance cover is a crucial safety net for underinsured or uninsured people who rely on these benefits to support themselves and their dependents in the event of premature death or medical retirement,” said Josh.
“For this reason, it is crucial that employees have a remedy against the employer not only for the payment of their super contributions but also for damages or compensation for the insurances that are lost due to the non-payment.
“We are calling on the Government to ensure that this is fully and carefully considered in the current review of superannuation entitlements.”
The ALA has made a submission to the consultation on the Fair Work Legislation Amendment (Protecting Worker Entitlements) Bill 2023 [Provisions].
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