A ‘significant’ error: Lush discovers it owes staff AUD2 million in back pay after payroll error

A ‘significant’ error: Lush discovers it owes staff AUD2 million in back pay after payroll error

Lush has discovered that due to a payroll error, it has been underpaying staff in Australia since 2010, according to a report published by The Guardian.

The company reported itself to the fair work ombudsman after the mistake was unveiled. More than 5,000 employees are affected and they are collectively owed AUD2 million. Some could be due as much as AUD10,000.

The company has set up a ‘national payback scheme’ for staff and promised to pay back every cent with interest.

“What has become alarmingly clear to us at Lush Australia is that our internal payment systems have not kept pace with our growth,” Peta Granger, National Director, told The Guardian. “This resulted from a very serious failure on our part to upgrade our internal systems.

“We should have had far more respect for our people’s pay and upgraded our payroll infrastructure to keep up with the growth of our business.

“We would never knowingly underpay. This was not deliberate. It goes against everything we value and believe in, and we are so sorry to have let our staff down in this way.”

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