Coles to repay $1.5 million for underpaid long service leave

Coles has agreed to repay over $1.5 million to 10,698 employees after an investigation revealed underpayment of long service leave entitlements.

The audit, conducted by the NSW Industrial Relations Inspectorate, 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 is about $1.582 million, with workers receiving up to $8,100 each, according to the NSW Government.

The issue came to light after the Inspectorate in the NSW Premier's Department began investigating Coles' compliance with the Long Service Leave Act 1955.

The audit covered 6,346 current workers and 4,352 former employees.

Coles has since recalculated and backpaid the affected workers, while also making 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," said Industrial Relations Minister Sophie Cotsis in a statement.

"I would like to acknowledge Coles' commitment to ensuring they pay long service leave correctly."

Coles joins the growing list of organisations that were found to have underpaid employees on their long service leave entitlements. They include two Spotless entities, Crown Melbourne, Crown Resorts, Woolworths, among others.