[Australia] $6 million in backpay from World Vision following underpayments

[Australia] $6 million in backpay from World Vision following underpayments
11 Jul 2024

The charity World Vision Australia has back-paid more than $6 million to staff after it self-reported underpayments to the Fair Work Ombudsman in 2019, 9News reports.

According to World Vision, the underpayments occurred as a result of compliance issues and were discovered after an internal review.

3,000 current and former employees across Australia were reportedly underpaid more than $4.6 million in wages and entitlements including minimum wages, penalty rates and overtime, leave entitlements and allowances, in total, the Ombudsman said.

World Vision has now back-paid that amount together with $1.4 million in superannuation and interest.

Individual back payments ranged from less than $50 to $84,394. The average was around $1900.

World Vision Australia has also paid amounts it owed to more than 1000 former employees to the Fair Work Ombudsman as unclaimed monies after it was unable to locate those individuals.

Anna Booth - Fair Work Ombudsman - reportedly said that an enforceable undertaking was appropriate as the charity had cooperated with the FWO's investigation and demonstrated a commitment to rectifying underpayments and ensuring future compliance.

"Under the Enforceable Undertaking, World Vision Australia has committed to implementing stringent measures to ensure all its workers are paid correctly," Ms Booth said.

"These measures include implementing a new time and wages payroll system and commissioning, at its own cost, at least one annual audit to check it is meeting all employee entitlements."

Under the terms of the enforceable undertaking, World Vision Australia is also required to provide a report to the Fair Work Ombudsman on its progress in implementing improvements to its systems; run an independent employee hotline for three months; and publish and display notices about the enforceable undertaking and contraventions on its website and in its offices in Melbourne and Sydney.

World Vision Australia reportedly declined to comment further when contacted by nine.com.au


Source: 9News

(Quotes via original reporting)

The charity World Vision Australia has back-paid more than $6 million to staff after it self-reported underpayments to the Fair Work Ombudsman in 2019, 9News reports.

According to World Vision, the underpayments occurred as a result of compliance issues and were discovered after an internal review.

3,000 current and former employees across Australia were reportedly underpaid more than $4.6 million in wages and entitlements including minimum wages, penalty rates and overtime, leave entitlements and allowances, in total, the Ombudsman said.

World Vision has now back-paid that amount together with $1.4 million in superannuation and interest.

Individual back payments ranged from less than $50 to $84,394. The average was around $1900.

World Vision Australia has also paid amounts it owed to more than 1000 former employees to the Fair Work Ombudsman as unclaimed monies after it was unable to locate those individuals.

Anna Booth - Fair Work Ombudsman - reportedly said that an enforceable undertaking was appropriate as the charity had cooperated with the FWO's investigation and demonstrated a commitment to rectifying underpayments and ensuring future compliance.

"Under the Enforceable Undertaking, World Vision Australia has committed to implementing stringent measures to ensure all its workers are paid correctly," Ms Booth said.

"These measures include implementing a new time and wages payroll system and commissioning, at its own cost, at least one annual audit to check it is meeting all employee entitlements."

Under the terms of the enforceable undertaking, World Vision Australia is also required to provide a report to the Fair Work Ombudsman on its progress in implementing improvements to its systems; run an independent employee hotline for three months; and publish and display notices about the enforceable undertaking and contraventions on its website and in its offices in Melbourne and Sydney.

World Vision Australia reportedly declined to comment further when contacted by nine.com.au


Source: 9News

(Quotes via original reporting)

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