Westpac has stated it should repay $8m to about eight,000 employees who it underpaid by incorrectly calculating their lengthy service go away entitlements.
The financial institution joins a protracted record of Australian firms, together with rival Commonwealth Financial institution, Woolworths and the ABC, which have admitted to underpaying employees.
“We apologise to anybody impacted by these errors and our precedence is to make funds as quickly as doable,” Westpac’s head of enterprise companies, Alastair Welsh, stated.
“For lengthy service go away entitlements, totally different guidelines apply to totally different staff primarily based on their employment historical past and work preparations. Regrettably, our system didn’t appropriately seize the fitting methodology each time.”
He stated the financial institution was placing techniques in place to verify lengthy service go away was appropriately calculated.
“We’re dedicated to placing issues proper for our folks and stopping the difficulty from re-occurring, and we’ll proceed to examine our processes to make sure staff obtain their appropriate entitlements,” he stated.
The financial institution stated the $8m included curiosity. It’s understood the financial institution will begin distributing the cash to underpaid employees from subsequent month.
No cash can be clawed again from anybody who may need been overpaid.
The $8m underpayment is way lower than the greater than $50m CBA has paid out to about 41,000 present and former staff for underpayments stretching again to 2010.
And each are smaller than the $390m supermarket giant Woolworths expects to pay to resolve what’s believed to be Australia’s greatest underpayment case.
There is no such thing as a suggestion Westpac intentionally underpaid its employees.
Doing so – “wage theft” – was made a crime in Victoria final month. It attracts penalties of a high-quality of as much as $1m and as much as 10 years’ jail.
WA has laws earlier than state parliament designed to curb wage theft and the federal authorities has additionally proposed altering the regulation to sort out the issue.