25 Factory workers at Nambucca Heads on the NSW North Coast have been underpaid by a total of $45,000 over eight years.
An investigation by the Fair Work Ombudsman discovered that the wages system had been set up incorrectly resulting in miscalculations of leave accruals, leave loading and superannuation entitlements between 2007 and 2015.
The error had omitted to calculate 1100 hours of annual leave and 1300 hours of sick leave.
Fair Work Ombudsman Natalie James said “a mistake made eight years ago has now resulted in this business having to find $45,000 that it had not budgeted for.”
Ms James said the incident highlights the importance of employers ensuring workplace obligations are understood and help is sought where necessary.
“When we find mistakes, our preference is to educate employers about their obligations and assist them to put processes in place to ensure the errors are not repeated,” Ms James said.