November 16, 2021

Westpac Banking Corporation has entered into an Enforceable Undertaking with the Fair Work Ombudsman to backpay thousands of employees a total of $6 million.

Westpac self-reported to the Fair Work Ombudsman in April last year that it had underpaid the long-service leave entitlements of employees across Australia.

Payroll system errors resulted in the bank failing to correctly take into account employees’ overtime work, average weekly hours, bonuses, commissions and sick leave when determining how much long service leave to accrue to employees.

In some instances, Westpac also placed some employees on the wrong long service leave plan and did not properly apply entitlements under the National Employment Standards.

Affected employees were located across all States and Territories and worked in a variety of roles, ranging from bank tellers to managers and corporate staff.

The underpayments occurred across Westpac Banking Corporation’s portfolio of financial services brands, including Westpac Bank and St George Bank between 2014 and early 2021.

Individual underpayments ranged from less than $1 to more than $75,000.

In total, Westpac is back-paying more than 6400 current and former employees $6 million, which includes interest and superannuation.

Westpac has already back-paid the majority of employees and the EU requires the organisation to pay the remaining amounts owing to every affected employee, plus interest and superannuation, by 30 November 2021.

Westpac will also make a $343,866.96 contrition payment to the Commonwealth’s Consolidated Revenue Fund. The bank is also required to formally apologise to staff and publish social media and newspaper notices detailing its contraventions.


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One Response to "Westpac To Backpay $6m"

  1. Bouncer  November 19, 2021

    Funny how these “payroll system errors” always seem to be in favour of a business rather than its employees. I just can’t work it out. Maybe when employees are overpaid, if it ever does happen, the story never reaches the publishing media.

    Reply

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