Coles and Woolworths face $1 billion wage payback
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The Federal Court has delivered a judgement to supermarket giants Coles and Woolworths for allegedly underpaying up to 30,000 staff over several years which could see them repaying over $1 billion.
The dispute has primarily focused on “set-off arrangements” within employment contracts, a payroll process that is becoming commonplace within Australia. These arrangements roll entitlements owed under awards such as overtime and penalty rates into a higher base wage.
As a result, the ruling determined that both Coles and Woolworths failed to comply with keeping accurate employment records required under Fair Work Regulations. A further hearing on the matter will take place in late October.
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