Wage Inspectorate Victoria investigation finds 309 employees underpaid
Crown Melbourne and Crown Resorts have paid more than $500,000 to Victorian workers who were found to be underpaid for their long-service leave entitlements following an investigation by the Wage Inspectorate Victoria.
The inquiry revealed that 309 former employees were not compensated correctly for their entitlements between November 2018 and December 2022.
The investigation, initiated in May 2022, began after a former employee contacted the Wage Inspectorate seeking advice about an underpayment.
Former workers underpaid
As a result of the probe, the regulator confirmed that Crown had failed to meet its obligations under the Long Service Leave Act 2018, which mandates that employees with at least seven years of continuous service are entitled to long-service leave or payment for any unused leave upon termination of their employment.
In total, Crown has made remuneration payments amounting to $469,999, alongside interest and a voluntary 10% loading as a contribution payment. This brings the total payout to over $500,000 for affected workers.
"Wage Inspectorate Victoria's investigation has ensured over $500,000 is in the pockets of Victorians, where it belongs and where it will make a significant difference to their lives," said Robert Hortle, Commissioner of Wage Inspectorate Victoria, in a statement.
Crown receives formal warnings
The findings also led to formal warnings issued to Crown Melbourne and Crown Resorts, which were issued in accordance with the Wage Inspectorate's Compliance and Enforcement Policy.
Crown has since provided the regulator with information about additional measures it has implemented to ensure compliance with Victoria's long service leave law moving forward.
Latest News
Hortle pointed out that many large companies in Australia have been caught violating long service leave laws.
"Some of Australia's biggest companies have fallen foul of long service leave laws, including Crown, Commonwealth Bank, Optus, Woolworths, and Coles, so boardrooms across the nation should be asking questions about their own long service leave obligations and governance," he said.