Business to repay $2.6 million to employees

by Tammy Buckley03 Oct 2013

National child care provider, Camp Australia is to repay more than 3,000 current and former staff more than $2.6 million in underpaid wages, a press release from The Fair Work Ombudsman has revealed.

The out-of-school-hours care provider, which operates in all mainland states and territories, identified the underpayments after conducting a self-audit in late 2011.

A defect in its payroll system was identified which prompted a detailed audit, which found 3,251 employees had been underpaid a total of $2,617,353 between 1 January 2010 and 30 June 2012.  It also flagged some overpayments to staff in relation to first aid allowances.

Camp Australia has entered into an Enforceable Undertaking with the Fair Work Ombudsman under which it will rectify the underpayments by the end of this month (October 2013) and provide evidence of payments made to the Fair Work Ombudsman.  In instances where former staff can’t be located, payments will be held in trust for payment as employees are located.

The company has also been required to apologies to the underpaid staff and provide improved training in managing the HR, recruitment and payroll functions.

Camp Australia will also undertake further audits, one immediately, by external auditors for the period 1 July 2012 to September 2013 and then every year for the next two years.

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COMMENTS

  • by RivercityIR 7/10/2013 10:13:56 AM

    Perfect example of why companies need to be regularly audited to ensure that they are compliant.

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