Sunglass Hut ordered to pay $2.3 million for underpaying workers
The retailer has been dealt a huge blow after an investigation found it had breached workplace laws and ripped-off staff.
Retail
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Sunglass Hut has been ordered to back pay $2.3 million after underpaying 620 staff members at stores right across Australia.
The retailer self-reported the error to the Fair Work Ombudsman and has entered into a court-enforceable agreement to provide the correct payments to current and former employees.
Between 2010 and 2016, Luxottica Retail Australia — trading as Sunglass Hut — failed to agree in writing with its part-time workers on a regular pattern of working hours and days which is in breach of the industry award.
This led to the retailer failing to pay overtime rates with the underpayments ranging from $4 to as much as $42,912.
“Sunglass Hut breached workplace laws and their conduct falls short of lawful obligations to their employees, and community expectations,” Fair Work Ombudsman Sandra Parker said in a statement.
“This matter highlights that if employers incorrectly apply award conditions, it can have extensive and expensive consequences across the business for years to come.
“This outcome should also serve as a warning to all businesses that they need to actively check that they are paying their staff correctly.”
Sunglass Hut has already paid back nearly $1.5 million to 457 staff, leaving more than $800,000 still owing.
On top of the repayments, the retailer must also fund external auditors to manage pay and conditions until the end of 2022. It will also donate $50,000 to the National Association of Community Legal Centres as gesture of contrition.
Luxottica must also issue a letter of apology to each of the affected workers.
“Sunglass Hut acknowledges it made inadvertent errors in recording the regular pattern of hours of certain of its former and current part-time retail employees,” Luxottica Retail Australia writes in the enforceable undertaking.
“Sunglass Hut has expressed its sincere regret for the errors and has apologised to affected employees.”
If you worked at Sunglass Hut and are wondering if you’re owed money, contact the company at SunglassHut.HR@luxottica.com.au.
Continue the conversation on Twitter @James_P_Hall or james.hall1@news.com.au
Originally published as Sunglass Hut ordered to pay $2.3 million for underpaying workers
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