CBA underpaid workers millions in super

CBA underpaid workers millions in super

SMEs are not alone in getting caught out not paying employees correctly, with new revelations the Commonwealth Bank withheld millions of dollars in superannuation payments.

Following the well-publicised scandal involving compliance failures on money laundering reporting, the bank (CBA) issued a statement revealing other process failures.

This includes the findings of a review into Superannuation Guarantee (SG) entitlements for part-time workers, which found the employees had been shortchanged to the tune of $16.7 million since 1 July 2009.

However, the bank notes that “this review is ongoing and the precise amounts are yet to be determined”.

Interest on the amounts owed will also be paid, further increasing the final bill.

“We will be contacting the 36,000 current and former employees who are eligible for additional payments,” CBA said in a statement.

The government announced last month that it will introduce a bill this year to tighten rules on salary sacrificing contributions in a bid to crack down on “unscrupulous employers” actively trying to cheat workers out of super payments.

“If Australians are to continue to have confidence in the integrity of the superannuation system, we must ensure employers are paying workers their full entitlements, whether they are wages or superannuation,” Minister for Revenue and Financial Services Kelly O’Dwyer said.

Customers also out of pocket

It is not just employees of the bank who are due for refunds, with hundreds of thousands of customers set to be reimbursed for a range of improperly sold or administered products.

Around 355,000 customers will receive an average of $14, including interest, fees who have not been reimbursed on disputed card transactions.

Additionally, $586,000 are to be paid back to 9,600 customers for incorrect premium charges on Home Loan Protection insurance, and a further $10 million will be paid back to 65,000 customers mis-sold of Credit Card Plus insurance.

All of these refunds, combined with the SG reimbursements, equate to more than $32 million for the bank.

CBA underpaid workers millions in super
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