On The Run Service Station Chain to Compensate Staff with $2.3 Million in Back Pay

Incident Overview

On The Run (OTR), a prominent Australian service station chain, has been mandated to back pay or credit approximately $2.3 million in annual leave entitlements to 1,524 employees following an investigation by the Fair Work Ombudsman. The investigation, concluded in early 2023, revealed that the company had failed to correctly classify workers as shift workers, denying them their lawful entitlements to five weeks of annual leave instead of the standard four weeks.

OTR has agreed to an enforceable undertaking with the Fair Work Ombudsman, including a $150,000 contrition payment to the Commonwealth’s Consolidated Revenue Fund. The affected employees were primarily based in South Australia, with others in Victoria and Western Australia.

Site and Time

The classification errors occurred across OTR’s service station network in South Australia, Victoria and Western Australia between July 2018 and February 2023, when the internal review was completed.

Persons Involved

Affected Employees

• 1,524 workers misclassified as non-shift workers across multiple states
• 934 former employees receiving back pay
• 590 current employees receiving annual leave credits

Plant and Task

Employer

• On The Run (OTR) service station chain
• Operations across South Australia, Victoria and Western Australia

Work Classification Issue

• Employees incorrectly classified as non-shift workers rather than shift workers
• Resulted in denial of one additional week of annual leave per year

Injuries / Fatalities

Fatalities

• None reported.

Injuries

• None reported.

Financial Rectifications

Back Pay and Credits

• Back pay to 934 former employees: over $975,000
• Annual leave credits to 590 current employees: 43,900 hours valued at approximately $1.3 million
• Contrition payment to Commonwealth Consolidated Revenue Fund: $150,000

Investigation Underway

The Fair Work Ombudsman’s investigation identified the systemic misclassification and prompted OTR to conduct a comprehensive internal review spanning the period from July 2018 to February 2023. The company has agreed to implement robust systems and processes to ensure accurate employee classification and compliance with workplace entitlements going forward.

In Summary

Affected employees who believe they may be entitled to additional back pay or leave credits are encouraged to contact the Fair Work Ombudsman on 13 13 94 or visit www.fairwork.gov.au for further information about their entitlements and the rectification process.