![[Australia] Coles must repay $1.5m for long service leave discrepancies](http://globalpayrollassociation.com/cdn/shop/articles/bigstock--147383399_9d8b47ac-fa05-481b-b53e-4daee0eb6f61_1200x.jpg?v=1734580122)
In Australia, the supermarket chain Coles has agreed to repay over $1.5 million to 10,698 employees following an investigation which uncovered its underpayment of long service leave entitlements, HRD reports.
The investigation was carried out by the NSW Industrial Relations Inspectorate. It found that Coles had failed to correctly calculate ordinary pay, overlooking allowances and bonuses, leading to discrepancies in long service leave payments.
The total remediation amount reportedly totals around $1.582 million and workers will receive up to $8,100 each, the NSW Government said.
The discrepancies were revealed after the Inspectorate in the NSW Premier's Department began looking into Coles' compliance with the Long Service Leave Act 1955.
Its audit reportedly covered 6,346 current workers and 4,352 former employees.
Coles subsequently recalculated and back-paid affected workers. In addition, the retailer made significant changes to its payroll system to ensure compliance with NSW Industrial Relations' prescribed methodology.
"This outcome is a reminder to employers, big and small, to make sure they are following the rules and that they can proactively self-report non-compliance to NSW Industrial Relations," Sophie Cotsis - Industrial Relations Minister - said in a statement.
"I would like to acknowledge Coles' commitment to ensuring they pay long service leave correctly."
Coles is only the latest organisation found to have underpaid employees on their long service leave entitlements. The issue has previously arisen for companies including two Spotless entities, Crown Melbourne, Crown Resorts, and Woolworths.
Source: HRD
(Link and quotes via original reporting)
In Australia, the supermarket chain Coles has agreed to repay over $1.5 million to 10,698 employees following an investigation which uncovered its underpayment of long service leave entitlements, HRD reports.
The investigation was carried out by the NSW Industrial Relations Inspectorate. It found that Coles had failed to correctly calculate ordinary pay, overlooking allowances and bonuses, leading to discrepancies in long service leave payments.
The total remediation amount reportedly totals around $1.582 million and workers will receive up to $8,100 each, the NSW Government said.
The discrepancies were revealed after the Inspectorate in the NSW Premier's Department began looking into Coles' compliance with the Long Service Leave Act 1955.
Its audit reportedly covered 6,346 current workers and 4,352 former employees.
Coles subsequently recalculated and back-paid affected workers. In addition, the retailer made significant changes to its payroll system to ensure compliance with NSW Industrial Relations' prescribed methodology.
"This outcome is a reminder to employers, big and small, to make sure they are following the rules and that they can proactively self-report non-compliance to NSW Industrial Relations," Sophie Cotsis - Industrial Relations Minister - said in a statement.
"I would like to acknowledge Coles' commitment to ensuring they pay long service leave correctly."
Coles is only the latest organisation found to have underpaid employees on their long service leave entitlements. The issue has previously arisen for companies including two Spotless entities, Crown Melbourne, Crown Resorts, and Woolworths.
Source: HRD
(Link and quotes via original reporting)