Employment Hero: $2b start-up hands win to industry super in Hostplus feud

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Employment Hero’s software was recast to reflect pre-existing super accounts, but its founder sustained his crusade against Hostplus, which sought his sacking.

Already a subscriber?The $2 billion HR start-up at war with industry superannuation fund Hostplus appears to have bowed to pressure from its deep-pocketed backer in a feud sparked by Employment Hero’s determination to give paying funds priority placement over legacy accounts.

Until Wednesday, Employment Hero’s user guides indicated it showed users a range of fund alternatives on equal footing, some of which paid for that placement. “While we’re not on Employment Hero’s board, we are working with both parties to find a common understanding of the issues they’ve put forward,” she said.

Spirit Super’s disclosures show it spent $1.69 million last year with Employment Hero, plus “future variable payments”, while Aware Super spent $1.78 million over six months. Engineering Super paid an outsourced marketing provider $721,948.

 

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