Flight Centre taken to court over wage payments that allegedly short-changed workers

Flight Centre has been taken to court over wage payments that allegedly short-changed workers hundreds of thousands of dollars.

Flight Centre has been taken to court over allegedly underpaying workers hundreds of thousands of dollars.

The major travel group has been accused of the “systemic underpayment of workers through a dubious pay structure” that undercut wage awards prescribed under the Fair Work Act.

The trial begins in Brisbane’s Federal Circuit Court on Monday.

Maurice Blackburn Lawyers and the Together Union have brought the legal action against Flight Centre on behalf of five former workers who claim they were robbed of pay and entitlements totalling more than $200,000.

The legal firm and the union said potentially thousands of current and former Flight Centre workers could be owed money under the pay structure, a target-based incentive scheme primarily made up of commissions.

When the court action was filed in April last year, Flight Centre “categorically denied” the allegations.
The company has since adopted a new enterprise agreement and changed the pay structure.

Maurice Blackburn and the Together Union have brought the legal action against Flight Centre. Picture: Glenn Hunt/AAP

Maurice Blackburn principal Giri Sivaraman said Flight Centre’s old pay structure was a complex system of commissions and top-ups that allegedly undercut the basic entitlements workers required under Australian law.

“This system was without a doubt double-dipping by Flight Centre,” Mr Sivaraman said.

“Flight Centre for years operated a dubious system that enabled them to use the same sum of money paid to workers for two different purposes. They ran a target-based incentive scheme for sales staff that paid commissions and then pointed to these same commissions to argue that they were meeting basic award requirements.”

Mr Sivaraman also noted the Fair Work Act did not allow an employer to substitute commissions for a worker’s award entitlements.

The legal firm and the union say potentially thousands of current and former Flight Centre workers could be owed money. Picture: Josh Woning

“Workers should be rewarded for meeting targets without having to sacrifice their basic award entitlements, and companies like Flight Centre must ensure they are meeting the basic minimum under the award without relying on top-ups and commissions,” he said.

Together Union secretary Alex Scott said major companies such as Flight Centre needed to be held to account in meeting payment obligations.

“Flight Centre is a massive company who for years ran a calculated and deliberate system that relied on commissions to drive down the wages of its workers,” Mr Scott said.

“That system allowed Flight Centre to repeatedly pay many workers under the award.

“Flight Centre is not above the law, and that’s why we are fighting this landmark case on behalf of our members – this was systemic wage theft and they must be held to account.”

Flight Centre has been contacted for comment.

Originally published as Flight Centre taken to court over wage payments that allegedly short-changed workers