Hospitality App Scam: Is Your Super Being Paid?
A recent ABC report reveals some hospitality businesses are using shift-covering apps to avoid paying superannuation to workers, especially those on temporary visas. This practice leaves workers, including international students, at a financial disadvantage later in life. Understand your rights and how to check your super payments.
Urgent Warning: Are You Missing Out on Superannuation?
Working in Australia while studying or on a temporary visa is a common way to support yourself. Many international students and temporary visa holders find jobs in the bustling hospitality sector, often through convenient shift-finding apps. However, a recent investigation by ABC News has uncovered a concerning practice: some businesses are using these apps to sidestep their legal obligation to pay superannuation.
What is Happening?
The report highlights how certain hospitality venues are classifying workers found through apps as 'contractors' rather than 'employees.' This distinction is crucial. While employees are entitled to superannuation contributions (currently 11% of their ordinary time earnings), contractors generally are not, unless specific criteria are met. Employers are using this loophole to avoid paying super, leaving many workers, particularly those unaware of their rights, significantly out of pocket.
Why This Matters for You
Superannuation is your retirement savings. Even if you plan to return home after your studies or temporary stay, you might be able to claim your super back through a Departing Australia Superannuation Payment (DASP) when you leave the country permanently. Missing out on super means losing a substantial portion of your earned money – money that could be a significant boost to your savings or future plans.
For international students, working under these conditions not only affects your current earnings but also sets a precedent for how employers treat you. Understanding your entitlements is key to protecting yourself from exploitation.
Are You an Employee or a Contractor?
The difference isn't always clear-cut. Even if an employer calls you a 'contractor,' the law looks at the reality of your working relationship. If an employer dictates your hours, provides tools/equipment, and has control over your work, you are likely an employee and entitled to super, regardless of what's written in a contract or what type of app you use to find shifts.
What You Can Do
It’s vital to be proactive. Check your payslips carefully. If you're unsure, or if superannuation isn't mentioned, investigate further. Remember, your employer must contribute to your super fund if you're an employee, generally earning $450 or more (before tax) in a calendar month, regardless of whether you're full-time, part-time, or casual.
Australia has strong work rights, and these laws apply to everyone working here, including international students and temporary visa holders. Don't let an app or an employer's misclassification deny you your rightful earnings.
Source: The hospitality app some businesses use to cover shifts without paying super - ABC News
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Frequently asked questions
What is superannuation?
Superannuation (or 'super') is a compulsory system in Australia where employers pay a percentage of your earnings into a fund to provide for your retirement. It's your money, and you may be able to claim it when you permanently leave Australia.
How do I know if I'm entitled to super?
If you are an employee (not a genuine contractor) and earn $450 or more (before tax) in a calendar month, your employer must pay super for you, regardless of your visa status or if you're full-time, part-time, or casual.
What if my employer calls me a 'contractor' but treats me like an employee?
The law looks at the reality of your working relationship, not just the label. If your employer controls your work, supplies tools, and dictates hours, you are likely an employee and entitled to super. Contact the Fair Work Ombudsman if unsure.