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Underpayment Penalty Highlights the Importance of Award and Payroll Compliance

Underpayment Penalty Highlights the Importance of Award and Payroll Compliance

underpayment

Due to a payroll discrepancy, casual employees of two of New South Wales’ leading zoos, Taronga Zoo and Taronga Western Plains Zoo, are entitled to receive a substantial amount of back pay.

Key takeaways:

  • Payroll irregularities led to $2.6 million in underpayments for casual staff at Taronga Zoo
  • Approximately 586 current employees and 316 past workers are affected
  • Following a strike in Dubbo, an audit was demanded by the Australian Workers Union, uncovering the issue

On a recent Friday morning, Taronga Zoo management informed the staff about their intention to rectify $2.6 million in “past-due payments” owed to 902 present and past casual staff at both the Sydney and Dubbo facilities.

The discrepancy was traced back to the introduction of a new payroll system in February 2021, prompting Taronga Zoo to probe the previous payroll system that was in use for six years.

Cameron Kerr, Taronga Zoo’s CEO, expressed his regret for the inconvenience caused to the employees, promising that the back pay process will commence in July.

“We deeply regret any hardship caused by this unintentional error,” he said. “It is unfortunate that amid the disruptions caused by COVID-19 and the introduction of the new payroll system, these shortcomings went unnoticed.”

Affected staff will receive back pay inclusive of six per cent interest and 11 per cent superannuation. Rectification of the payroll system will also be initiated starting July 13.

Australian Workers Union Role On the other hand, the Australian Workers Union, representing workers at both zoos, claimed the error wouldn’t have been discovered if it hadn’t advocated for an audit.

Tony Callinan, the union’s NSW branch secretary, noted the audit request was the result of maintenance workers at Dubbo’s Taronga Western Plains Zoo voicing their discontent over inaccurate pay and leave calculations, along with persistent issues with the payroll system for over a year and a half.

This dissatisfaction resulted in a 24-hour industrial strike by 40 Dubbo workers last November.

“At first, the management disregarded our members’ concerns,” he explained. “They avoided engaging with AWU as their representative, which is why we resorted to industrial action last November.”

According to Callinan, the members expressed satisfaction with the improved process and correct payments.

“While it’s unfortunate to witness underpayments, it’s encouraging that these casual workers will now receive their due payment, alleviating some of their cost-of-living pressures,” he added.

Responding to this, Taronga Zoo stated that the union’s claims were distinct and pertained to configuration issues with the newly introduced payroll system.”

For more information on the above, please contact us on 1300 887 458 and speak with one  of our HR Consultants. If you are interested in learning more about our HR services, including HR OutsourcingHR ConsultingHR Advisory Services, contact us at enquiries@liquidhr.com.au.

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