It follows an audit by the Inspectorate in NSW Industrial Relations, Premier's Department which commenced an investigation into supermarket giant Coles specifically with respect to long service leave.
The NSW agency requested information regarding their compliance with the Long Service Leave Act 1955.
As a result, Coles has agreed to repay over $1.5 million in unpaid long service leave entitlements having audited 10,698 employees (6,346 current workers and 4,352 former workers).
The approximate remediation amount is $1.582 million with workers receiving up to $8,100.
The underpayment occurred due to a failure to calculate ordinary pay correctly. This was caused by several factors, including not taking into consideration allowances and bonuses.
Coles has recalculated and back paid employees and made significant changes to their payroll processes.
Coles has also agreed to invest in its payroll system to comply with the NSW Industrial Relations’ prescribed methodology and to ensure ongoing compliance.
The current action serves as a reminder for businesses to ensure compliance with NSW legislation and to proactively self-report systemic non-compliance to NSW Industrial Relations.
For more information on Long Service Leave entitlements in NSW, visit https://www.industrialrelations.nsw.gov.au/employers/nsw-employer-essentials/long-service-leave-entitlement-nsw/
Minister for Industrial Relations Sophie Cotsis says:
“The NSW Government is committed to ensuring workers receive their correct entitlements.
“This outcome is a reminder to employers, big and small, to make sure they are following the rules and that they can proactively self-report non-compliance to NSW Industrial Relations.
“I would like to acknowledge Coles’ commitment to ensuring they pay long service leave correctly.”
