Fast food workers fight for unpaid superannuation from Red Rooster franchisee

The fast food worker has been fighting for the money but is concerned his former employer is never going to pay it.

Dion Camilleri has been in a battle for the last three years to try and get his former fast food employer to cough up unpaid superannuation that would be worth $60,000 to him in retirement.

He is one of millions of Aussies waiting on an employer to pay what they are legally entitled.

Industry Super Australia data revealed that 2.9 million Australian employees missed out on $5 billion in employer super contributions in 2018–2019, meaning a quarter of employees are owed on average $1700.

The 27-year-old was working at a franchised Red Rooster as a casual averaging between 15 to 30 hours a week while at university.

He worked at the fast food branch in Queensland between 2015 and 2018 and knew he wasn't being paid super the whole time.

But he felt he couldn’t bring it up as he needed the money for living expenses and didn’t want to risk having his hours “drastically” cut.

The 27-year-old could miss out on $60,000 in retirement if the money isn't paid. Picture: Supplied

Now working in financial planning, he said he is owed around $4700 and has found the experience “frustrating” having to chase his former employer, the Australian Taxation Office and even Red Rooster’s head office, with his complaints falling on “deaf ears”.

“It doesn’t sound like a lot of money … but $4700 now at a realistic indexation of say 6 per cent over 40 years its closer to $60,000 in retirement, which is obviously I’m not something I want to be missing out on,” he said.

While his former employer promised to pay up, Mr Camilleri ultimately had to lodge a complaint with the ATO, which conducted their own investigation.

In mid-2019, the ATO found he was owed close $5000, yet it has refused to disclose to him the amount of time the employer has to repay these funds plus interest, he claimed.

He has called the ATO approximately every six months, but a year and a half after the investigation was concluded, he feels there have been no “repercussions” for the employer.

“I have concluded the ATO have absolutely no power at all. I do not know what to do and fear I will never receive my entitlement,” Mr Camilleri said.

“The ATO is supposed to be able to protect Australians and ensure illegal activity is caught and punished, yet it appears they are all talk.”

An ATO spokeperson said it could not comment on the affairs of any individual due to confidentiality.

Dion Camilleri wants to see employers held to account better if they aren't paid superannuation. Picture: Supplied

In 2020-21, the ATO contacted more than 19,000 employers as a result of reviews or audits which resulted in raising $880 million in liabilities and distributing over $944.7 million to employees, they added.

“We will pursue the outstanding debt, aiming to collect and distribute unpaid super and interest to employees as soon as possible,” they added.

“We focus on actively engaging with clients who have outstanding debts and in some cases we will commence firmer and stronger action to recover the amount owed. This may include the issue of Director Penalty Notices or seek court ordered directions to pay the super guarantee contribution.”

However, when a company becomes deregistered or an employer becomes insolvent, it can be difficult for the ATO to recover super guarantee owed to employees, they said.

While Mr Camilleri said his former employer was still in business, he was concerned that young fast food workers will continue to be “taken advantage of” when it comes to paying superannuation.

News.com.au reached out to Red Rooster for comment but did not hear back.

Mr Camilleri said young fast food workers could be taken advantage of. Picture: Hollie Adams/The Australian

He said he helped colleagues at Red Roosters access their super accounts for the first time while in the job.

“I wouldn’t be surprised if this happens across a lot of industries where the younger generation is prominent in that workforce, particularly fast food, which has such a young workforce,” Mr Camilleri said.

“In that stage of their careers they don’t know anything about superannuation nor do they care and who can blame them at this age? At that age I can understand you haven’t been educated about superannuation and nothing is taught about it in school and unfortunately employers know that and the younger workforce can be taken advantage of.

“It’s a real shame as for the ATO it doesn’t seem like a priority for them.”

Meanwhile, Xavier O’Halloran, director of Super Consumers Australia, said the problem of unpaid super is further exacerbated by the three month period employers can take to make super payments.

“This gap makes it harder for a person to check with their super fund to see if their payments are up to date,” he explained.

“It also delays when the ATO can act on non-payment. The three month delay is a hangover from a paper-based era. We’ve had real-time payment of wages for decades, it is time we did the same for super.”

Xavier O’Halloran said the system also needs changing. Picture: Supplied

Even if your pay slip says you have been paid correctly, it’s a good idea to regularly log into your super account and check you’re receiving contributions at least every three months, advised Mr O’Halloran.

“If you think your employer owes you super, consider raising it with them directly. If you think that might impact your employment you can report non-payment using the unpaid super form on the ATO website,” he said.

“You should also double check that your employer has your correct account details and that the super isn’t being paid into an old account.”

Originally published as Fast food workers fight for unpaid superannuation from Red Rooster franchisee