Optus Retailco to Compensate Workers with $7.8 Million for Underpayments

Incident Overview

Optus Retailco, a subsidiary of Singtel Optus, has agreed to compensate 3,744 current and former employees with more than $7.8 million in back payments following systematic wage underpayments spanning six years. The settlement follows a self-report to the Fair Work Ombudsman in April 2021 and an enforceable undertaking requiring stringent corrective measures.

The underpayments affected retail consultants and store managers across Australia between January 2014 and March 2020, with individual compensation ranging from $11 to approximately $34,000.

Scope of Underpayments

Affected Components

• Base pay
• Weekend and public holiday loadings
• Meal allowances
• Overtime and penalty rates
• Leave entitlements

Period

• January 2014 to March 2020

Root Cause

• Inadequate payroll systems and practices

Persons Involved

Affected Workers

• 3,744 current and former employees
• Roles: retail consultants and store managers

Employer

• Optus Retailco Pty Ltd (subsidiary of Singtel Optus)

Compensation and Remediation

Back Payments

• Total: $7.8 million
• Individual range: $11 to approximately $34,000

Enforceable Undertaking Commitments

• Contrition payments: $450,000 initially, plus additional payments based on future audit findings
• Further payroll reviews and independent audits
• Stringent measures to ensure accurate future wage payments

Injuries / Fatalities

Fatalities

• None reported.

Injuries

• None reported.

Regulatory Action

The Fair Work Ombudsman accepted Optus Retailco’s self-report in April 2021 and negotiated an enforceable undertaking to address systemic payroll failures and prevent future underpayments. The undertaking includes independent audits and ongoing compliance monitoring.

In Summary

Affected workers who believe they have not received their full back-payment entitlement, or who have questions about the settlement, should contact the Fair Work Ombudsman on 13 13 94 or visit www.fairwork.gov.au for further information and support.