Update: Woolworths staff underpayments blow out to almost $400M

Whilst Woolworths Limited informed investors on Tuesday, 23 June 2020, that sales figures have remained strong despite consumers easing up on Covid-19 stockpiling, the announcement was tainted by a development in the Company’s wage underpayment scandal.

A further $75 million in staff underpayments has been identified, blowing out the potential total of the underpayments to an estimated $390 million. This is the second time Woolworths have increased their estimated underpayment liability and the news has weighed down the otherwise positive performance of the company.

Woolworths has now reviewed 70% of their employment records, meaning the final underpayment liability could still increase further from their current estimate of $390 million.

This development highlights the need for employers to ensure their employment contracts take into account the onerous requirements of modern awards and enterprise agreements. If you would like more information and/or require assistance with matters involving potential wage underpayments, please do not hesitate to contact  Nick StevensJane Murray or Bernard Cheng.

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