Connect with us

Hi, what are you looking for?

Top Stories

Major Underpayment Scandal: Coles and Woolworths Face $Millions in Claims

URGENT UPDATE: A shocking underpayment scandal involving Australian grocery giants Coles and Woolworths is escalating, with both companies facing demands to repay tens of millions of dollars to over 30,000 current and former staff. This comes after a landmark ruling by Federal Court Justice Nye Perram on Friday morning, which exposed serious failures in payroll practices that have persisted for over a decade.

The court’s 204-page judgment revealed that both companies inadequately tracked employee entitlements, leading to widespread underpayments. Justice Perram stated, “The basic problem common to each action is that the employees in question were employed under written contracts providing for an annual salary.” This systemic issue has resulted in millions owed to employees who were not compensated for overtime, penalty rates, and other entitlements.

Coles and Woolworths have already repaid substantial amounts—Woolworths more than $486 million and Coles around $30.1 million—but the latest findings indicate they owe much more. The Federal Court has found that Coles underpaid 8,768 staff and Woolworths 19,000 workers, from store managers to department heads.

Justice Perram highlighted the gravity of the situation, indicating that the employees should be restored to their rightful financial positions, stating, “It is a payment in addition to the remuneration under the contract of employment and it is clear it is not a payment directly related to the performance of work.” He also ruled that the burden of proof regarding underpayment allegations falls on employers, intensifying the scrutiny on Coles and Woolworths.

The findings stemmed from four class actions initiated by Adero Law and the Fair Work Ombudsman in 2019 and 2020. Both companies neglected to maintain essential records of working hours, which should have been accessible for inspection, exacerbating the issue.

With the potential remediation costs now exceeding $547 million for Woolworths and an estimated $50 million for Coles, this scandal has transcended corporate history, marking it as the largest underpayment case ever documented by a court in Australia.

Adero Law’s managing principal, Rory Markham, emphasized the severity of the situation, stating, “The clear ‘evidentiary vacuum’ that Coles relied upon to conduct its HR and payroll system was a ‘calamity which belongs to Coles and not its employees.’” The judgment serves as a stark reminder for employers about the importance of meticulous payroll practices.

The repercussions of this ruling extend beyond financial penalties. Business lobby groups are responding to the implications of the judgment, calling attention to the complexities of the regulatory landscape. Australian Retailers Association chief executive Chris Rodwell criticized the current system, noting the difficulties faced by businesses in navigating the intricate pay rate structures.

Both supermarket giants have acknowledged the ruling, with Woolworths CEO Amanda Bardwell stating, “We are focused on resolving these underpayment issues. We are committed to ensuring that our team members are paid correctly.” Similarly, Coles is reviewing the judgment to assess its full impact.

A key hearing is scheduled for October 27 to determine the total remediation amount owed. With the stakes higher than ever, employees, legal experts, and the public will be watching closely as this unprecedented case unfolds, signaling a critical moment for labor rights in Australia.

Stay tuned as we continue to monitor this developing story, which has already caused significant reverberations across the retail sector and beyond.

You May Also Like

Top Stories

URGENT UPDATE: The family of 15-year-old Thom Hosking has issued a heartfelt tribute following his tragic death in a crash in Bendigo on October...

Top Stories

UPDATE: The search for missing four-year-old August “Gus” Lamont in South Australia has taken a grim turn, with officials reporting “zero evidence” the child...

Sports

Mason Cox, a beloved figure at the Collingwood Football Club, has announced he will not be offered a new contract for the upcoming season....

Top Stories

BREAKING NEWS: Global discount retailer Costco is set to revolutionize shopping in Perth as it announces plans to open its first store in the...

Education

This week offers a vibrant array of cultural experiences, from an exhibition spotlighting the literary genius of John le Carré to a bold theatre...

Top Stories

UPDATE: The mother of allegedly murdered teen Pheobe Bishop has reached out with a poignant letter to the family of Gus, a four-year-old who...

Sports

Fans of English football were treated to a compelling analysis of crucial refereeing decisions during two marquee matches on October 21, 2023. In a...

Sports

Jake Connor, the Super League Man of Steel, has not been selected for the England squad ahead of the Rugby League Ashes series against...

Sports

The Melbourne Storm will not pressure coach Craig Bellamy to make a decision regarding his future beyond 2026, despite overtures from the Gold Coast...

Technology

A major data breach affecting approximately 5.7 million customers has prompted Qantas Airways to seek legal protection in the NSW Supreme Court. The airline...

Technology

Labor Senator Deborah O’Neill has called for the Albanese government to demand a full refund from Deloitte Australia following the revelation that a $440,000...

Entertainment

Abbie Chatfield, the former star of *The Bachelor* and a prominent social media influencer, has acknowledged defaming her ex-friend, Heath Kelley. The admission follows...

Copyright © All rights reserved. This website provides general news and educational content for informational purposes only. While we strive for accuracy, we do not guarantee the completeness or reliability of the information presented. The content should not be considered professional advice of any kind. Readers are encouraged to verify facts and consult appropriate experts when needed. We are not responsible for any loss or inconvenience resulting from the use of information on this site.