Retail giant Best & Less faces back-pay crisis, owes over $5.2M to underpaid workers
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When shopping for discounted basics and fashion items, many Aussies are thankful to have Best & Less around.
However, unfortunately for the retail giant, things haven't been all smooth sailing of late, as it was recently revealed that the company shelled out a whopping total of $5.2 million to its staff.
Reports found that around 686 current and former store managers who worked at the company between 2013 and 2020 had been incorrectly paid.
They were not properly reimbursed for overtime, penalty and annual leave entitlements. The staff, who were managers on a fixed salary, were also found to have been paid rates that didn't match the General Retail Industry Award 2010.
As such, the entitlements they were owed weren't fully granted. So, Best & Less were ordered to back pay the impacted individuals—whose balances ranged from $4 to $42,144 each—and lost superannuation was also factored in.
Altogether, the underpayments totalled $5.21 million, plus nearly $500,000 in lost superannuation. The oversight affected workers across Australia in both regional and metropolitan stores.
According to a statement by the Fair Work Ombudsman (FWO), Best & Less, a retail company, has been found to have failed to maintain accurate records of hours worked by store managers and assistant store managers. As a result, the company has been required to take specific actions to rectify the situation.
One of these actions is an enforceable undertaking, which obligates Best & Less to repay all the owed money by October. The company has reportedly reimbursed a 'large majority' of this amount already.
The penalty imposed on Best & Less includes a contrition payment of $200,000 to the Commonwealth's Consolidated Revenue Fund. The company is also obligated to fulfil extra conditions, including establishing a hotline for employees to inquire about their concerns and displaying the notice regarding underpayment on their social media platforms and website.
Acting FWO Kristen Hannah has used this case as a warning to other employers to guarantee they are keeping on top of their responsibilities, saying: 'Insufficient salaries have become a persistent problem in many Australian workplaces.'
'Employers need to be aware that employees must be paid at least the minimum entitlements that they are owed under the applicable industrial instrument, such as an award. Employers that take a “set-and-forget” approach and fail to record and reconcile actual hours worked when paying salaries risk substantial back-pay bills to their hardworking staff.'
Best & Less currently has 189 stores across Australia and employs more than 4300 staff with a market value of $235,062,994.
It's important that everyone receives their rightful wages, and it's encouraging to witness companies that value and appropriately compensate their employees. We're curious to know what you think about this news, members! Feel free to share your thoughts in the comments section.
However, unfortunately for the retail giant, things haven't been all smooth sailing of late, as it was recently revealed that the company shelled out a whopping total of $5.2 million to its staff.
Reports found that around 686 current and former store managers who worked at the company between 2013 and 2020 had been incorrectly paid.
They were not properly reimbursed for overtime, penalty and annual leave entitlements. The staff, who were managers on a fixed salary, were also found to have been paid rates that didn't match the General Retail Industry Award 2010.
Best & Less has been forced to pay back staff more than $5.2m after it was revealed they were not properly reimbursed for overtime, penalty and annual leave entitlements. Image source: Wikimedia Commons.
As such, the entitlements they were owed weren't fully granted. So, Best & Less were ordered to back pay the impacted individuals—whose balances ranged from $4 to $42,144 each—and lost superannuation was also factored in.
Altogether, the underpayments totalled $5.21 million, plus nearly $500,000 in lost superannuation. The oversight affected workers across Australia in both regional and metropolitan stores.
According to a statement by the Fair Work Ombudsman (FWO), Best & Less, a retail company, has been found to have failed to maintain accurate records of hours worked by store managers and assistant store managers. As a result, the company has been required to take specific actions to rectify the situation.
One of these actions is an enforceable undertaking, which obligates Best & Less to repay all the owed money by October. The company has reportedly reimbursed a 'large majority' of this amount already.
The penalty imposed on Best & Less includes a contrition payment of $200,000 to the Commonwealth's Consolidated Revenue Fund. The company is also obligated to fulfil extra conditions, including establishing a hotline for employees to inquire about their concerns and displaying the notice regarding underpayment on their social media platforms and website.
Acting FWO Kristen Hannah has used this case as a warning to other employers to guarantee they are keeping on top of their responsibilities, saying: 'Insufficient salaries have become a persistent problem in many Australian workplaces.'
'Employers need to be aware that employees must be paid at least the minimum entitlements that they are owed under the applicable industrial instrument, such as an award. Employers that take a “set-and-forget” approach and fail to record and reconcile actual hours worked when paying salaries risk substantial back-pay bills to their hardworking staff.'
Best & Less currently has 189 stores across Australia and employs more than 4300 staff with a market value of $235,062,994.
It's important that everyone receives their rightful wages, and it's encouraging to witness companies that value and appropriately compensate their employees. We're curious to know what you think about this news, members! Feel free to share your thoughts in the comments section.
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