Fair Work Ombudsman
Citation: FWO-2023-01-20-super-retail-group-litigation-media-release
At a glance
- Respondent
- Super Retail Group
- Penalty
- $1,000,000
- Employees affected
- 146
- Awards cited
- MA000006
What happened
The Fair Work Ombudsman has commenced legal action in the Federal Court against Super Retail Group Limited (SRG Limited) and four subsidiaries: Super Cheap Auto Pty Ltd, Rebel Sport Ltd, SRG Leisure Retail Pty Ltd (trading as BCF and Ray’s Outdoors), and Macpac Retail Pty Ltd. SRG Limited disclosed widespread underpayments to the Fair Work Ombudsman and the Australian Securities Exchange. Approximately 146 employees across the group are the focus of the legal action, alleging a total of $1.14 million in underpayments between January 2017 and March 2019. The underpayments reportedly occurred because salaried employees’ annual salaries did not cover their minimum lawful entitlements, particularly overtime work. The workers included full-time, part-time and casual staff, based in stores across Australia.
What was decided
The Fair Work Ombudsman is taking legal action against SRG Limited and its subsidiaries for alleged underpayments totaling approximately $1.14 million. The Ombudsman alleges that the underpayments resulted from annual salaries failing to cover minimum lawful entitlements, particularly overtime. The case is notable as the first action alleging breaches by a holding company for contraventions by its subsidiaries. The Fair Work Ombudsman alleges some failures, particularly regarding overtime for 'set up' workers, constitute 'serious contraventions' under the Fair Work Act. SRG Limited is accused of knowing about the issues from April 2017 but failing to act until January 2018.
What it means for employers
Employers, especially those with subsidiaries, must ensure annual salaries adequately cover all minimum lawful entitlements for all hours worked. Holding companies have a responsibility to implement thorough governance measures to ensure compliance across all subsidiaries and to promptly address any identified issues. Failure to do so can result in substantial back-payment bills and significant court-ordered penalties, particularly for serious contraventions.
What it means for employees
Employees should be aware of their entitlements and seek advice if they suspect they are being underpaid. The case highlights the importance of ensuring annual salaries cover all hours worked, including overtime, penalty rates, and allowances. Casual, part-time and full-time staff are all potentially affected.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2023-media-releases/january-2023/20230120-super-retail-group-litigation-media-releaseWant more cases like this?
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This summary was drafted by AI 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 →