Superannuation Contributions to Become Part of the National Employment Standards From 2024

One of the final amendments to the Fair Work Act 2009 made under the Fair Work Legislation Amendment (Protecting Workers Entitlements) Bill 2023 which will incorporate employee superannuation contributions into the National Employment Standards found within division 2 of the FW Act will be in force from 1 January 2024.

Currently, the ATO has the sole responsibility for ensuring that superannuation contributions are made to employees and for handling employee complaints of unpaid superannuation contributions.

However, this significant amendment to the FW Act will mean that the Fair Work Ombudsman will now also be in the position to prosecute employers for unpaid superannuation contributions in breach of the national employment standards and may elect to litigate on behalf of the employee in the Federal Court of Australia or the Industrial Magistrates Court of Western Australia.

Under the new amendment, if litigation proceeds under the FW Act,  the employer may be ordered by a Court to pay the employee any unpaid superannuation contributions and may face civil penalties for breaching the National Employment Standards which are currently $66,600.00 per contravention for a corporate and $13,320.00 per contravention for individuals (potentially Directors, Accountants, Book Keepers, Human Resources Officers).