Insolvency Insider Australia
Posts
Beyond the payslip: ‘true employer’ principle extended to indirectly funding employment expenses

Beyond the payslip: ‘true employer’ principle extended to indirectly funding employment expenses

Insolvency Insider
July 03, 2026

Nicholas Edwards, Brit Ibanez and Ben Fisher of Hamilton Locke summarise a recent case where the NSW Supreme Court extended the “true employer” principle to a group company that indirectly funded wages and employment costs, allowing 27 employees to claim unpaid superannuation as priority creditors in a liquidation despite being formally employed by an assetless related entity.