Fair Work Ombudsman
Citation: FWO-2024-06-20-eagers-eu-media-release
At a glance
- Respondent
- Eagers Automotive Limited
- Penalty
- $16,000,000
What happened
Eagers Automotive Limited, Australia's largest car dealership business, back-paid more than $16 million including interest and superannuation to staff underpaid by five of its subsidiaries, and signed an Enforceable Undertaking with the Fair Work Ombudsman. The five subsidiaries were acquired in 2019 from Automotive Holdings Group. Affected employees mainly worked in dealerships across Newcastle, Sydney, Brisbane, Melbourne and Perth. EAL self-reported in June 2021 after a post-acquisition payroll review found anomalies.
What was decided
EAL and its subsidiaries entered an EU with the FWO and completed more than $16 million in back-pay. The figure is remediation, not a civil penalty. EAL agreed to compliance measures under the EU, covering the acquired dealership businesses.
What it means for employers
When you acquire a business, you inherit its payroll non-compliance. Mergers and acquisitions should trigger a full audit of the target's award and enterprise agreement pay practices before, or immediately after, completion. Failing to detect non-compliance post-acquisition is treated as your problem, not the previous owner's.
What it means for employees
If you worked for an Automotive Holdings Group dealership before 2019, or for one of the five AHG subsidiaries acquired by Eagers, your pay between the acquisition and the remediation may have been wrong. Eagers' remediation program covers the affected dealerships. Contact Eagers or the FWO on 13 13 94 to check.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →