'We have since made back payments or corrected leave balances,’ says spokesperson
Supermarket giant Woolworths is facing more than 1,000 criminal charges for allegedly failing to pay over $1 million of long-service leave entitlements to 1,235 former employees.
The Wage Inspectorate Victoria filed the charges accusing the company of failing to pay over $960,000 in long-service leave entitlements to 1,199 former employees.
Woolworths subsidiary, Woolstar Pty. Limited, also allegedly failed to pay more $45,000 in long-service leave entitlements to 36 former employees.
The alleged underpayments ranged between $250 to over $12,000 and took place between 2018 and 2021, according to the agency.
"Victorians expect businesses with significant payroll resources to get this stuff right. They'd be disappointed to see a household name facing underpayment allegations," said Robert Hortle, commissioner of Wage Inspectorate Victoria, in a statement.
Long Service Leave Act
Woolworths allegedly violated Victoria's Long Service Leave Act, which grants eligible employees with leave service entitlement after they worked continuously for the same employer for at least seven years.
According to the wage inspectorate, the supermarket giant allegedly contravened the law's section 9(2), which states that if employment ends before the leave is taken, employers "must pay the employee the full amount of the employee's long service leave entitlement."
A spokesperson from Woolworths told the Sydney Morning Herald (SMH) that the company reported the issue to the Wage Inspectorate Victoria in February 2022.
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It came after the company's internal review discovered that some employees had not been paid long-service leave.
"We have since made back payments or corrected leave balances to affected team members, including interest and superannuation," the spokesperson told the SMH. "We have apologised to affected team members and strengthened our payroll systems to address the long service leave issues we identified."
The first hearing on the case is listed for September 6 in the Melbourne Magistrates' Court.
Other alleged breaches by employers
Meanwhile, Wage Inspectorate Victoria said it also has cases against Optus, CommSec, and BankWest filed in court for alleged breaches to the state's long-service leave laws.
In its investigation in 2021, the agency revealed that over 4,000 former Coles workers in Victoria were also underpaid almost $700,000 in long service leave entitlements.
"Long-service leave is a long standing, valued workplace entitlement in Victoria, and the Wage Inspectorate is here to ensure it is paid when it is owed," Hortle said.
The Wage Inspectorate Victoria recently announced that it helped employees recover more than $1 million long-service leave entitlements in the past financial year.
"We helped Victorians reclaim over $1 million in unpaid long-service leave – money that is rightfully theirs," Hortle said in another media release. "It's great to see employees being empowered by the Wage Inspectorate to stand up for what they're owed."