Fair Work Ombudsman
At a glance
- Insurance Australia Group Services Pty Limited and Insurance Manufacturers of Australia Pty Limited
- $21,000,000
What happened
Insurance Australia Group Services Pty Limited and Insurance Manufacturers of Australia Pty Limited, both subsidiaries of IAG, signed an Enforceable Undertaking with the Fair Work Ombudsman after back-paying more than $21 million in owed wages and entitlements. IAG operates brands including NRMA Insurance, RACV, CGU, SGIO, Swann Insurance, WFI and ROLLiN. The companies self-reported in December 2020. Underpayments were caused by basic shortcomings, including not having time and attendance systems in place, which meant employees were not paid for their actual hours of work. IAG also failed to reconcile enterprise agreement pay against minimum entitlements.
What was decided
IAG entered an EU with the FWO and back-paid more than $21 million. The FWO used the decision to urge boards to treat corporate culture and wage compliance as governance matters. The $21 million is remediation, not a civil penalty. IAG agreed to a compliance program under the EU.
What it means for employers
Boards are now on notice: the FWO expects wage compliance to be owned at board and culture level, not buried in HR or payroll. Not having a functional time and attendance system is treated as a basic, systemic failure. Enterprise agreement pay must be reconciled against minimum entitlements regularly.
What it means for employees
If you worked for IAG, NRMA Insurance, CGU, SGIO, Swann Insurance or related brands during the relevant period, your pay may not have matched the hours you actually worked. IAG is contacting affected staff. If you think you may have been missed, contact IAG's remediation program or the FWO on 13 13 94.
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