Fair Work Ombudsman
Citation: FWO-2024-04-09-on-the-run-eu-media-release
At a glance
- Respondent
- On the Run Pty Ltd
- Penalty
- $2,300,000
- Employees affected
- 1524
- Awards cited
- MA000138, MA000172
What happened
The Fair Work Ombudsman investigated On the Run Pty Ltd (OTR), a service station and convenience store operator with locations in South Australia, Victoria, and Western Australia, following employee queries. An investigation of 15 sites revealed OTR incorrectly classified employees, leading to underpayment of annual leave entitlements. Between July 2018 and February 2023, 1,524 employees were affected. 934 former employees will receive back payments totaling over $975,000, and 590 current employees will have over 43,900 hours of annual leave credited. Affected employees were mainly console operators or roadhouse attendants.
What was decided
On the Run Pty Ltd has signed an Enforceable Undertaking (EU) with the Fair Work Ombudsman to back-pay underpayments and rectify the issue. The company will back-pay more than $975,000 to former employees and credit over $1.3 million in annual leave entitlements to current employees. A contrition payment of $150,000 will be made to the Commonwealth. OTR must also engage an independent auditor to verify compliance with annual leave entitlements and establish an employee hotline. The Fair Work Ombudsman considered the company’s cooperation and commitment to rectifying the underpayments when deciding on the EU.
What it means for employers
Employers must accurately categorise employees to ensure correct payment of entitlements. Failing to do so can result in significant underpayments, rectification costs, and legal action. Large employers should prioritise systems and processes to guarantee employees receive their full lawful entitlements consistently.
What it means for employees
Employees should be aware of their annual leave entitlements and check pay slips to ensure accuracy. If underpayments are suspected, employees can contact the Fair Work Ombudsman for assistance. Former and current employees of On the Run Pty Ltd may be eligible for back payments or credited annual leave.
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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