Contrition payment and apology added to back pay
Another day, another company caught in an underpayment scandal. Westpac recently entered an enforceable undertaking (EU) with the Fair Work Ombudsman (FWO) for underpayment of its workers due to miscalculations in long service leave entitlements between 2014 and early 2021.
The EU entailed that Westpac back pay a total of $6 million in wages, superannuation and interest to 6,400 current and former employees across Westpac’s brands, including St. George Bank. These include bank tellers, managers and corporate staff. This comes after the major bank self-reported to the FWO in April 2020 after uncovering these errors during an internal review.
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"Westpac apologises sincerely that this error has occurred and has repaid all long service leave underpayments to the current and former employees that it could locate, with interest,” Westpac said in a statement.
Individual underpayments range from less than $1 to more than $75,000, while those who have been overpaid were not asked to give back any compensation.
Westpac is expected to finish the remaining back payments by November 30, as stipulated in the EU.
Sandra Parker of FWO said an EU – a written agreement between the FWO and the company acknowledging its law breach – suffices given that Westpac has been cooperative and resolved to correct the situation.
“Under the EU, Westpac has committed to stringent measures to comply with the law and protect its workforce,” Parker said. “This includes engaging, at its own cost, an expert auditing firm to check its workplace compliance each year for the next two years.”
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If Westpac does not comply with the agreed terms of an EU, the issue can be taken to court.
Read more: Why companies get caught in underpayment scandals
Westpac was also called to make a $344,000 contrition payment to the Commonwealth, along with a formal apology to its staff and a public notice to the media accounting for its violations.
“This matter serves as a warning to all large employers that if you don’t prioritise workplace compliance, you risk underpaying staff on a large scale,” Park said. “Any employers who need help meeting their lawful workplace obligations should contact us for free advice.”