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

Introduction

On The Run (OTR), a prominent service station chain, has been mandated to back pay or credit approximately $2.3 million in annual leave entitlements to its Australian employees, following an investigation by the Fair Work Ombudsman that revealed the company failed to correctly classify 1,500 workers as shift workers.

Investigation Findings

The Fair Work Ombudsman’s investigation into OTR uncovered that a significant number of employees were not classified as shift workers, thereby not receiving the rightful five weeks of annual leave entitled to shift workers, as opposed to the standard four weeks. The investigation led to a comprehensive internal review by OTR, identifying 1,524 employees affected by this oversight from July 2018 to February 2023.

Financial Rectifications

OTR is now in the process of back paying over $975,000 to 934 former employees and crediting more than 43,900 hours of annual leave worth about $1.3 million to 590 current employees. The company has also agreed to a $150,000 contrition payment to the Commonwealth’s Consolidated Revenue Fund as part of an enforceable undertaking with the Ombudsman.

Geographical Impact

The majority of the affected employees were based in South Australia, with others in Victoria and Western Australia. The back payments and credit adjustments span across these regions, reflecting the national scale of OTR’s operations.

Implications for Employers

This case serves as a critical reminder for all employers about the importance of accurately categorizing their employees to ensure compliance with workplace entitlements. The Ombudsman, Anna Booth, emphasized the need for robust systems and processes to uphold employees’ lawful entitlements consistently.