Fair Work Ombudsman Sandra Parker

August 28, 2020

Sunwater has backpaid employees more than $2 million after failing to pay employees on individual contracts their full entitlements.

The State Government-owned organisation has entered into an enforceable undertaking with the Fair Work Ombudsman.

Sunwater self-reported to the regulator last year that it had identified underpayments during an annual remuneration review for employees on individual contracts.

The affected employees were mainly technical specialists and managers.

The underpayments were the result of Sunwater failing to ensure its employees on individual contracts received all entitlements payable under the enterprise agreements covering its workforce, having incorrectly assumed these employees were excluded from coverage.

This resulted in employees on individual contracts being underpaid base salaries, annual leave loading, on-call and relocation allowance, superannuation and accrued time-off in-lieu. Record-keeping laws were also breached.

Sunwater has so far back-paid 73 workers a total of more than $2.3 million, which includes interest and superannuation, who were underpaid between 2006 and 2020.

Individual underpayments ranged from less than $60 to more than $224,000.

“Sunwater has demonstrated a strong commitment to rectifying underpayments, and the Enforceable Undertaking commits the company to stringent measures to protect its workforce,” Fair Work Ombudsman Sandra Parker said.

“This includes engaging an expert auditing firm to conduct an independent assessment of the outcomes of its rectification program and to audit its compliance over the next two years.

“This matter serves as a warning to all organisations that they must prioritise workplace compliance. Any employers who need help meeting their lawful workplace obligations should contact us.”

Under the Enforceable Undertaking, Sunwater will also make a “contrition payment” into Consolidated Revenue, estimated to be more than $100,000.

Sunwater must also fund an independent organisation to operate a hotline for the next 12 months that employees can use to make inquiries in relation to their entitlements, underpayments or related employment concerns.

Sunwater is also required to display public, workplace and online notices detailing its workplace law breaches.

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