Australian retailer Woolworths Group and its subsidiary Woolstar Pty have had more than 1,000 charges filed against them by Wage Inspectorate Victoria for failing to make long service leave payments.
The charges, which were filed in the Magistrates’ Court of Victoria, alleged that the group failed to pay more than $1 million Australian dollars (£515,165) in long service leave to 1,235 former employees, with underpayments ranging from $250 (£128) to $12,000 (£6,182). It is also alleged that between 2018 and 2021, Woolworths Group failed to pay more than $960,000 (£494,558) in long service leave entitlements to 1,199 former employees.
During the same period, Woolstar Pty is alleged to have also failed to pay more than $45,000 (£23,182) in long service leave entitlements to 36 former employees.
Wage Inspectorate Victoria stated that this is a contravention of section 9(2) of Victoria’s Long Service Leave Act 2018, which provides long service leave for employees who have worked continuously with one employer for at least seven years. At this point, an employee is entitled to take the leave and be paid any unused entitlement when their employment ends.
The maximum penalty for each offence is 60 penalty units for each day that the offences continue: $9,671.40 (£4,981) from July 2018 to June 2019, $9,913.20 (£5,106) from July 2019 to June 2021 and $10,904.40 (£5,617) from July 2021 to June 2022.
The matter will be mentioned in Melbourne Magistrates’ Court on 6 September.
Robert Hortle, commissioner of Wage Inspectorate Victoria, said: “Victorians expect businesses with significant payroll resources to get this stuff right. They’d be disappointed to see a household name facing underpayment allegations. Long service leave is a long-standing, valued workplace entitlement in Victoria, and the Wage Inspectorate is here to ensure it is paid when it is owed.”
“The amount of underpayment never tells the full story in long service leave matters. It’s hard to put a value on the leave workers were initially denied. Time that could have been spent with family, travelling or just relaxing.”
Woolworths was contacted for comment prior to publication.