BREAKING NEWS: The payroll scandal involving Australian grocery giants Woolworths and Coles has escalated dramatically, with a Federal Court ruling confirming that both companies must repay tens of millions more to over 30,000 current and former employees. This shocking development marks a pivotal moment in what has become the largest underpayment scandal in Australian history.
Just hours ago, Justice Nye Perram delivered a profound judgment, revealing that both supermarkets failed to accurately track employee entitlements under the retail award, affecting wages spanning over a decade. “Woolworths and Coles did not keep track of the entitlements of these employees under the award,” Justice Perram stated in his 204-page ruling released on October 27, 2023.
The implications of this ruling are massive, as it holds both companies accountable for past payroll practices. Woolworths has already repaid more than $486 million to staff after self-reporting underpayments in October 2019. Coles has followed suit, returning $30.1 million and setting aside $50 million for future repayments. However, both companies are expected to pay millions more as the court determined they had not adequately documented overtime hours, penalty rates, or other essential employee entitlements.
The court combined four separate cases from Adero Law and the Fair Work Ombudsman, initiated in 2019 and 2020, which alleged that Woolworths underpaid 19,000 employees and Coles shortchanged 8,768. The ruling emphasizes that the burden of proof lies with employers, requiring them to substantiate their payroll records.
“We believe Coles owes several times more than what it has paid to date,” said Rory Markham, managing principal of Adero Law, highlighting the extensive financial repercussions of the scandal. The ruling marks a critical juncture for corporate accountability in Australia, with Justice Perram asserting that these underpayments represent the largest documented case in the nation’s history.
Both companies have acknowledged the complexity of the judgment and are currently reviewing its implications. Woolworths CEO Amanda Bardwell stated, “We are committed to ensuring that our team members are paid correctly.” Coles has also promised to provide updates as they assess the situation.
As the legal fallout continues, a case management hearing is scheduled for October 27, 2023, to determine the full remediation sum owed to affected employees. The ramifications of this judgment extend beyond these two companies, serving as a stern warning to all major employers regarding the importance of meticulous payroll practices.
Business leaders are already expressing concerns about the broader regulatory framework. Chris Rodwell, chief executive of the Australian Retailers Association, noted the challenges posed by the current pay rate structures, stating, “The General Retail Industry Award 2010 is incredibly difficult for employers to understand.”
With significant financial stakes involved, the outcome of this case could reshape how Australian businesses manage employee compensation and compliance. The public is urged to stay tuned for updates as this story develops.
This is an urgent and evolving situation that highlights the critical importance of transparency and accountability in corporate payroll practices. Share this article to keep your network informed about this groundbreaking case affecting thousands of workers across Australia.
