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FWOFair Work Ombudsman · 23 February 2023

Fair Work Ombudsman

Citation: FWO-2023-02-24-david-jones-and-politix-eus-media-release

At a glance

Penalty
$1,900,000
Employees affected
7000
Awards cited
MA000000

What happened

David Jones Pty Ltd and Cicero Clothing Pty Ltd (trading as Politix) have signed Enforceable Undertakings (EUs) with the Fair Work Ombudsman. They reported underpayments to the Fair Work Ombudsman in September 2020. The underpayments, affecting over 7,000 employees, stemmed from payroll errors, incorrect salary calculations, and failures to provide required entitlements. Politix underpaid approximately 850 employees between November 2016 and September 2020, while David Jones underpaid around 2,800 employees between April 2014 and September 2020. The total underpayment amounts were approximately $2.06 million plus $45,000 in superannuation for Politix and $480,000 plus $1.4 million in superannuation for David Jones. Most backpayments have been made.

What was decided

David Jones and Politix have signed Enforceable Undertakings (EUs) to rectify underpayments and improve compliance. They must backpay remaining underpayments, superannuation, and interest, totaling approximately $60,000 for David Jones and $409,000 for Politix. They will also make contrition payments of $130,000 and $160,000 respectively to the Commonwealth’s Consolidated Revenue Fund. The companies must commission independent annual audits for two years and operate an employee hotline for six months. Individual underpayments ranged up to $12,576 at David Jones and $22,956 at Politix.

What it means for employers

Employers must prioritise ensuring staff receive all lawful entitlements. Insufficient annualised salaries are a persistent problem. Employers should review payroll processes and systems to prevent underpayments and ensure compliance with workplace laws. Regular audits are recommended to identify and rectify any errors.

What it means for employees

Employees should be aware of their entitlements and report any suspected underpayments. Former employees are still eligible for back payments. The Fair Work Ombudsman provides resources and support for employees experiencing workplace issues.

underpaymentpenalty-ratesgeneral-protectionsmodern-award-variationwage-theft

Every statement above is drawn from the published decision. Read the original here:

https://www.fairwork.gov.au/newsroom/media-releases/2023-media-releases/february-2023/20230224-david-jones-and-politix-eus-media-release

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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 →

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