Hamilton Island operators ordered to back pay $28m to staff by Fair Work Ombudsman

Operators of a popular island hideaway have been ordered to pay staff an eye-watering amount after they were underpaid for years.

The companies responsible for operating Queensland’s popular Hamilton Island have been ordered to back pay staff more than $28m following a years-long investigation.

The Fair Work Ombudsman (FWO) began an investigation in 2020 into Hamilton Island Enterprises (HIE) and its wholly owned subsidiary, Hamilton Island Shared Services (HISS).

The corporate watchdog said the companies had paid full-time staff annual salaries insufficient to cover minimum award entitlements, including their overtime penalties.

Staff had since been given back payments ranging from $5 to $119.446, with an average payout of $8000, as well as $6m in interest and $500,000 in superannuation.

As of January, the payments had been made to 2152 current and former staff employed between December 2014 and December 2022, with 32 employees unaccounted.

FWO Anna Booth said the companies had also signed an enforceable undertaking and shown “a strong commitment to rectifying its noncompliance issues”.

The companies operating Queensland’s popular Hamilton Island have been ordered to back pay staff more than $28m.

“Under the enforceable undertaking, the companies have committed to rectifying all underpayments they identify in full, plus interest and superannuation,” she said.

The companies will also implement “stringent measures” to ensure all staff are paid correctly in future.

“Businesses paying annual salaries cannot take a ‘set-and-forget’ approach to paying their workers,” Ms Booth said.

“Employers must ensure wages being paid are sufficient to cover all minimum lawful entitlements for the hours their employees are actually working.”

HIE operates a range of accommodation businesses on the island as well as the marina, airport, retail stores, restaurants, and leisure and recreation facilities.

HISS, meanwhile, administers support services to HIE for finance, bookings, sales and marketing.

The most common entitlements underpaid to staff included overtime rates, weekend and public holiday penalties, broken-shift allowances, and annual leave loading.

More than 2000 staff were affected. Picture: Hamilton Island Tourism

The majority of the affected staff worked across the many businesses run by HIE at Hamilton Island, while a smaller number were employed by HISS in Sydney.

They included food and beverage supervisors, chefs, front office employees, clerical employees, housekeeping employees, handymen and concierges.

A further $250,984 plus super is to be paid to 32 employees not yet found, with HIE having under the undertaking until June 30 to rectify all underpayments.

The companies must also pay a $750,000 contrition payment, with $500,000 to be paid to the Commonwealth Consolidated Revenue Fund and $250,000 to charity.

An independent audit will also be undertaking into payments of salaried employees as part of the undertaking, with the result to be reported to the Ombudsman.

Originally published as Hamilton Island operators ordered to back pay $28m to staff by Fair Work Ombudsman