Australia’s Westpac to pay $5.5 Million for 8,000 workers because of staff underpayment

Australia’s Westpac to pay $5.5 Million for 8,000 workers because of staff underpayment

Australia’s second-largest lender, Westpac Banking Corp. (WBC.AX), announced on Friday that it would pay AUD 8 Million ($5.5 Million) including interest to around 8,000 employees who have underpaid their long service leave entitlements due to calculation errors.

The company blamed the methodology used which failed to determine long service leave entitlements in situations where staff members had changed their work arrangements, such as moving from full-time to part-term work. It also failed to send a payroll review to all of its employees.

“We apologise to anyone impacted by these errors and our priority is to make payments as soon as possible. For long service leave entitlements, different rules apply to different employees based on their employment history and work arrangements. Regrettably, our system didn’t correctly capture the right methodology every time,” Westpac’s Enterprises Services Group Executive Alastair Welsh said.

“We are putting in place measures to ensure employee long service leave is correctly calculated,” he added.

Some of Australia’s largest companies including Wesfarmers Ltd. (WES.AX), Coles Group (COL.AX), and Woolworths Group (WOW.AX) have detected errors that led to employee’s underpayment in recent years.

 

 

 

 

 

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?