Suncorp forced to back pay staff $32m
The organisation underpaid more than 15,800 employees between May 2014 and March 2022.
The FWO (Fair Work Ombudsman) has entered into an enforceable undertaking with Suncorp to back pay staff approximately $32 million, including interest and superannuation.
The FWO found the organisation underpaid more than 15,800 employees’ minimum wages between May 2014 and March 2022 due to an incorrect application of the term ‘rostered employee’ in its enterprise agreements.
The inconsistent use of ‘rostered employee’ led to the underpayment of entitlements, including overtime, shift loadings, weekend penalties, annual leave loading, public holiday loadings, long service leave, redundancy and superannuation.
The underpaid current and former employees of the organisation worked across the country in several roles in the insurance arm including as advisors, assessors, customer support staff, team leaders and managers.
The individual underpayments ranged from $1 to $54,951 with an average underpayment of $1,687 per impacted employee.
The FWO said Suncorp had already back paid over 99 per cent of the more than $32 million owed, which included having paid approximately $26 million in wages and entitlements, $4.5 million in interest and $1.4 million in superannuation.
The regulator said the outstanding underpayments had to be rectified by September 2023.
As part of the enforceable undertaking, Suncorp was also required to make a $520,000 contrition payment to the Commonwealth Consolidated Revenue Fund.
It also needed to operate an employee information channel for 60 days, provide appropriate training to staff and provide a signed letter of assurance to the FWO from their group executive confirming they were now compliant.
Fair Work Ombudsman Sandra Parker said an enforceable undertaking was appropriate as Suncorp had demonstrated a strong commitment to rectifying underpayments.
“Under the enforceable undertaking, Suncorp has committed to stringent measures to ensure its employees are paid correctly in the future. These measures include engaging, at the company’s own cost, two independent annual audits to assess its compliance with workplace laws,” said Ms Parker.
“This matter demonstrates the importance of employers placing a high priority on compliance, including with all clauses in their enterprise agreements.”
“Suncorp’s incorrect application of particular clauses has led to underpayment of basic employee entitlements and a large back-payment bill.”
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