National Australia Bank agrees to $169 million undertaking over payroll failures
What happened
National Australia Bank committed to an enforceable undertaking with the Fair Work Ombudsman regarding payroll failures that affected 66,000 workers over more than a decade. The total cost of the failures is estimated at $169 million, which includes $127 million in back payments, $34 million in interest, and $8 million in superannuation. Additionally, the Ombudsman imposed a $2 million contrition payment on the bank.
From edenmagnet.com.au
Why it matters
The commitment represents one of the largest contrition payments ordered in an enforceable undertaking by the Fair Work Ombudsman. The bank first self-reported the underpayments to the Ombudsman in late 2019, after an internal review found significant errors when applying its enterprise agreement.
From edenmagnet.com.au
Who's involved
- National Australia BankThe financial institution that committed to paying $169 million to resolve payroll failures.
- Fair Work OmbudsmanThe government agency that ordered the enforceable undertaking and imposed the contrition payment.
- Finance Sector UnionThe trade union that criticized the bank, calling the underpayment 'theft'.
Keep exploring
The entities involved
-
National Australia Bank
financial institution in Australia
-
Fair Work Ombudsman
central point of contact for free advice and information on the Australian national workplace relations system