LUSH Cosmetics has admitted to underpaying employees a total of around $2 million.
The popular beauty and skincare company apologised to more than 5000 staff it underpaid in a lengthy statement on Tuesday.
In the statement, Lush said they had “unearthed some serious miscalculations of peoples pay where our payroll system did not automatically pick up all the Award entitlements since the introduction of the Modern Awards in 2010.”
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“We estimate these errors have lead to an accidental underpayment of approximately $2 million affecting up to 5000 current and former staff,” the company said.
“This was a dreadful shortcoming for which we apologise unreservedly, not just to our staff, but also to our customers and the wider community.”
The company said they’re committed to repaying every cent owed to former and current employees who have been affected.
“The next step is calculating the individual amounts and paying back each member of staff the money they are owed, which will be paid with interest added and with superannuation payments, where relevant, to ensure that staff get every cent they are owed and are not left out of pocket by our mistakes.”
“We are confident that verified calculations will begin to be ready around December and as each calculation is released to us it will be paid out immediately.”
To ensure that the same mistake is never repeated, Lush said they have rolled out a new automated payroll system.
“At the beginning of July we began rolling out a new, compliant payroll system that will interpret the Awards automatically and ensure the correct rates are paid moving forward,” the company said.
“The new payroll system will also enable all employees to view how much they were paid for each shift worked and its relevant entitlements.”
Former staff members employed by Lush since 2010 are being urged to register their details via the company’s dedicated backpay scheme page here.