Fair Work Ombudsman
Citation: FWO-2025-01-30-hamilton-island-eu-media-release
At a glance
- Penalty
- $28,100,000
What happened
Hamilton Island Enterprises Limited and its subsidiary Hamilton Island Shared Services signed an Enforceable Undertaking with the Fair Work Ombudsman after back-paying staff more than $28.1 million. The FWO began investigating in 2020 following requests for assistance from staff. Most of the underpayments were caused by the companies paying many full-time employees annual salaries that were not high enough to cover their minimum Award entitlements, once overtime, shift-work and penalty-rate hours were included. The most common entitlements underpaid were overtime, weekend and public holiday penalties and broken-shift allowances.
What was decided
Hamilton Island's operating companies entered an Enforceable Undertaking with the FWO and back-paid more than $28.1 million in remediation. The amount is back-pay, interest and superannuation, not a civil penalty. The companies agreed to new compliance and reconciliation measures under the EU.
What it means for employers
Annualised salaries for hospitality and tourism staff must be reconciled every year against Award minimums, including overtime, weekend and public holiday penalties and allowances. If staff routinely work overtime, broken shifts or weekends, the salary set-off rarely works on its own. You need evidence the salary covers all hours at the right rates, not a blanket assumption.
What it means for employees
If you were on an annualised salary in a hospitality, tourism or resort role and you regularly worked overtime, weekends, public holidays or broken shifts, check whether that salary actually covered what the relevant Award would have paid. The Fair Work Ombudsman will investigate where salaries fall short. Contact them on 13 13 94 for a review.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2025-media-releases/january-2025/20250130-hamilton-island-eu-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 →