Popular bakery owes staff almost $250,000 in super, but 'payday' super could protect workers
June 9 2925
ABC News.

All Are Welcome Bakery owes staff $243,000 in superannuation and $125,000 in leave entitlements.   

In short:
Staff from a Melbourne bakery are owed $243,000 in superannuation and $125,000 in leave entitlements.

The bakery entered voluntary administration at the start of the year with the owner buying back the business under a new entity.

What's next:
CPA Australia is urging the federal government to postpone the rollout of the payday super regime for up to two years from its planned start date of July 2026.


Popular hospitality group All Are Welcome owes almost a quarter of a million dollars in superannuation to its current and former employees, with many staff feeling worried and concerned they won't see the money they are owed.

The Insta-famous bakery — with locations in Melbourne's Northcote, Thornbury and East Ivanhoe — entered voluntary administration in February this year after accruing more than $1 million in debts.

Documents shared with the ABC reveal staff are owed $243,000 in superannuation and $125,000 in leave entitlements, with the total amount owed to the ATO standing around $1.4 million.

But, according to the administrator's report, the original director — Boris Portnoy — bought back the business after it entered into voluntary administration, with question marks over whether he will carry over the former business's liabilities.

"[It's] quite concerning because I don't have confidence that I'm going to see that money," one former employee told the ABC.

"I think most of us as employees feel a little bit uncertain about whether or not it's going to go how the director says it will. [I feel] quite frustrated and disappointed." 
Staff owed thousands
The former staff member, who has asked not to be named, says they found out about the lack of super payments in March this year.

"When we received a correspondence from the administrators on the 12th of March which had some information about the business, including a section that stated how much money was owed in super, which prompted myself and others to go and check our super accounts properly."

They say, despite their pay slips including superannuation contributions, this money was not reflected in their accounts.

All Are Welcome bakery operates three stores across Melbourne in Northcote, Thornby and East Ivanhoe.

"It was clear that we hadn't been paid any super payments since around sort of September last year, which is around sort of eight or nine months worth of no super payments," they say.

"It was also then clear that payments made before that were not complete, so we were paid part of what we were owed with each instalment, but not the full amount, dating back another year or two."
Multiple former staff from the bakery have told the ABC they are each owed thousands of dollars in superannuation.

"[I felt] disappointed because we were led to feel quite responsible for the financial situation of the business in that there was a lot of pressure put on all of us as employees in terms of keeping the roster as tight as we can and ordering as tight as we can in order to sort of get the business across the line," said one former worker.

"Then to find out that we've been withheld entitlements and hadn't been told, felt like a bit of a blindside."

The former employee says there was no communication from the director and when they tried to seek answers from him, nothing was clear.

"The explanation of why we weren't paid super was that the business had been struggling financially and that was a method that he was able to use in order to help him with cash flow for the business," they said.

"So, by withholding our super, he was able to put that money towards other projects the business was working towards."
But they say nothing was provided in writing, and there was no clear timeframe on when staff may see their money.

"I'm not sure what's changed in order to allow him to pay that moving forward in a different manner."

During this period, Mr Portnoy also lent himself $235,028 through his family trust, which documents reveal "were made to him in lieu of a wage".

In a statement to the ABC, Mr Portnoy said: "As part of the business purchase all outstanding employee entitlements are to be assumed by the new company.

"The timing for the payment of the superannuation is being determined by the administrators and we will have a firm timeline after finalisation of the liquidation," he said.

"I regret the impact this has had on staff, and I remain committed to cooperating fully with the administrators to support the continuation of the business in a manner that prioritises entitlements and obligations."
The administrator did not respond to the ABC's request for comment.

Payday super means getting your super at the same time as your wage
Superannuation advocates have been pushing for "payday super" to help minimise this problem.

"Payday super, as it sounds on the tin, is your super paid on the same day as your wages.