Woolworths admits to underpaying staff by over $1 million—are you affected by this oversight?

Woolworths has found itself in the midst of a significant wage scandal.

The company, often seen as a staple in the lives of many Aussies, has admitted to underpaying its staff by more than $1 million.

This revelation has raised concerns among employees and customers alike, leaving many to wonder if they or someone they know might be affected by this oversight.


The issue, which came to light in 2023, was self-reported to the Wage Inspectorate Victoria after Woolworths conducted an internal review of its payroll systems.

It was discovered that discrepancies in the calculation of long service leave entitlements had led to underpayments of approximately 1,200 workers.

These underpayments occurred on 3,617 occasions between January 2020 and July 2022, affecting former employees of both Woolworths and Woolstar in Victoria.


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Woolworths employs approximately 200,000 people. Image Source: Shutterstock / ArliftAtoz2205


In a recent court appearance, Woolworths faced over 1,000 charges and could be looking at a maximum penalty of $10 billion.

The supermarket's legal representation highlighted Woolworths' proactive approach in self-reporting and investigating the issue, even being described as a 'model accused' by the prosecution.

They emphasised Woolworths' role as a significant employer of young people and argued that imposing the maximum penalty could deter other companies from coming forward in similar situations.


Despite the company's efforts to rectify the situation by reimbursing most of the affected former staff through various means, the Wage Inspectorate's barrister, Kathleen Crennan, argued that a corporation of Woolworths' size and resources should have had better systems in place to prevent such underpayments from happening.

She said, ‘With a corporation of these resources across jurisdictions, there’s really no excuse for this to have happened.’


For our readers, particularly those who have worked for Woolworths or have family members who have, this news may be quite unsettling.

It's a stark reminder that even large, trusted organisations can make mistakes that impact individuals' livelihoods.

If you believe you or someone you know might have been affected by this payroll error, it's crucial to contact Woolworths for clarification and to ensure that any owed compensation is received.

The case also serves as a broader lesson on the importance of vigilance regarding employment rights and entitlements.

Employees should regularly check payslips and understand employment terms, especially regarding entitlements like long service leave, which can sometimes be overlooked or misunderstood.
Key Takeaways

  • Woolworths has pleaded guilty to underpaying approximately 1200 workers more than $1 million in total.
  • The supermarket giant could face a maximum penalty of more than $10 billion for failing to pay some employees their long service leave entitlements.
  • Woolworths self-reported the underpayments and has reimbursed most affected former employees.
  • The magistrate questioned the delay in Woolworths discovering the payroll issues, indicating that the company should have had checks in place to prevent such underpayments.
Woolworths is set to be sentenced on April 24, and many will be watching closely to see the outcome of this case.

This isn't the only controversy that Woolworths is currently involved in; the company’s CEO seems to be in hot water in a recent senate inquiry.

It's a situation that undoubtedly shakes many's trust in large employers and highlights the need for transparency and accountability in corporate practices.

Have you or someone you know been impacted by the Woolworths underpayment? What are your thoughts on how large companies handle their payroll responsibilities? Share your experiences and opinions in the comments below.
 
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I bet Senior Management, The CEO, and the Board weren't short changed. Why do Companies like Woolworths do this shit. For God Sake, they are making so much in profits from ripping off suppliers and consumers, that surely they don't have to rip off their young staff too. They can afford to have robust systems to ensure that such "mistakes" do not occur. I don't trust them and neither should you!
 
I bet Senior Management, The CEO, and the Board weren't short changed. Why do Companies like Woolworths do this shit. For God Sake, they are making so much in profits from ripping off suppliers and consumers, that surely they don't have to rip off their young staff too. They can afford to have robust systems to ensure that such "mistakes" do not occur. I don't trust them and neither should you!
I don't.... not for a second.....one of the reasons I have not shopped at either for over 20 years.
 
If there was a decent HR dept this could not happen. Don't tell me they were not aware of wage structures. If we still had unions this would not be going on in most of the retail industry.
 
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The Great (un)Australian company that panders to Albo in pushing Australia Day into the forgotten past so that a referendum on becoming a republic gets improved positive impetus.
 

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