Bunnings underpaid superannuation entitlements for nearly 10 years

Bunnings has found an error in super payments for some workers going back almost 10 years.

Bunnings has revealed a near decade-long issue that underpaid superannuation entitlements for some staff. Picture: Bloomberg

Bunnings says it has discovered an error in superannuation payments for some part-time workers that goes back almost 10 years.

In the latest wages underpayment to hit a major Australian company, Wesfarmers-owned hardware chain Bunnings advised that it had been alerted to an error in the payroll system code, dating back to 2011.

The error affects part-time employees in Australian warehouses and smaller format stores who had worked more than their annual contracted hours from the 2011-12 financial year onwards.

In most cases the issue would only affect superannuation contributions for May or June of the relevant year, Bunnings said in a statement.

However, the hardware retailer said it was unable to immediately quantify the total value of the underpaid superannuation.

The revelation comes as the federal government mulls legislation that would allow for jail terms for employers convicted of wage theft. The government will this week release a discussion paper examining criminalising wage theft and gazetting new penalties for the underpayment of staff.

“Bunnings is running a full reconciliation, which will be independently verified, and will make a back payment plus compensation in accordance with Australian Taxation Office requirements,” the company said in a statement.

“Bunnings has briefed the Fair Work Ombudsman and notified the Retail Employee Superannuation Trust. Bunnings will also contact former team members who have been affected by this error,” the statement said.

Bunnings Human Resources Director Jacqui Coombes said the company regretted the error.

“We understand the importance of ensuring our team members are paid everything they are entitled to in full and on time — in this case, whilst inadvertent, we haven’t, and we are very sorry for that,” she said.

“Our focus now is on making sure we complete this reconciliation thoroughly and as quickly as possible, so we can ensure that the superannuation contributions and compensation owing are made to team members’ superannuation funds.

“We have also fixed the original error to ensure that this does not happen again.”

A number of well-known Australian companies have been caught out underpaying their staff this year. In July jewellery retailer Michael Hill said it had discovered it had underpaid staff for six years and may have to pay $25 million in back pay.

In February Super Retail Group, whose chains include BCF and Rebel, was engulfed by a second scandal involving the underpayment of staff. The issue stretched back almost a decade and would shave more than $40 million from half-year profit, Super Retail revealed.

Other companies caught out underpaying staff include Sunglasses Hut, Muffin Break and a raft of smaller employers, including television cook George Colambaris.