Westpac has reimbursed over $50 million to its employees following a prolonged period of wage underpayment, according to the Fair Work Ombudsman. This significant repayment comes after the bank recognized its shortcomings, which spanned an 11-year timeframe.
The issues at Westpac were largely attributed to deficiencies in their operational systems, governance frameworks, and compliance oversight. These flaws were compounded by poor record-keeping, a reliance on systems necessitating manual corrections, and errors in data entry.
Anna Booth, the Fair Work Ombudsman, expressed that an Enforceable Undertaking (EU) was deemed suitable due to Westpac’s full cooperation with the investigation. She noted the bank’s genuine efforts to address its compliance lapses and to prevent future occurrences.
“Westpac has completed the repayment process for all identified underpaid staff they could reach,” stated Booth. “This includes compensating employees beyond the typical six-year liability window. As part of the Enforceable Undertaking, the bank is committed to resolving any future underpayments it discovers, including additional interest and superannuation, and has pledged to enforce robust measures ensuring correct employee compensation moving forward.”
“Westpac has made full back-payments for all underpayments owed to employees it could locate,” Booth said.
“This includes back-payments extending well beyond the six-year liability limitation period. Under the Enforceable Undertaking, it has committed to rectifying any future underpayments it identifies in full, plus interest and superannuation, and implementing stringent measures to ensure all staff are paid correctly in future.”
The EU will also see the bank commission an independent audit to check compliance with workplace laws.
The ombudsman began to investigate the wages and entitlements of staff in December 2020 after Westpac self-reported its underpayments.
“Westpac uncovered these issues as part of our own review in 2020 and when we found them, we immediately moved to put things right,” a Westpac spokesperson said.
“We’re genuinely sorry this happened. Paying our people correctly is a fundamental obligation which we take seriously and we apologise again to all affected employees.
“As part of our comprehensive remediation program, we repaid those affected including employees who have since left the company. We did not ask anyone who has been overpaid to repay any money.
“We’ve also updated our systems and processes, investing significantly to better manage entitlements.”
