Alicia Gleeson sues Slater + Gordon over alleged leave underpayment scandal

The Labor-friendly law firm has been accused of deliberately miscalculating staff leave entitlements, failing to immediately reconcile the underpayments, and sacking the human resources boss who blew the whistle.

Chief people officer Alicia Gleeson, left, and chief executive Dina Tutungi.

One of Australia’s most prominent workplace compensation law firms has been accused of ­deliberately miscalculating staff leave entitlements, failing to ­immediately reconcile the ­underpayments, and sacking the human resources boss who blew the whistle on the ­alleged scandal.

Former Slater + Gordon chief people officer Alicia Gleeson has filed an explosive unfair dismissal suit in the Federal Court claiming she was fired after ­asserting that the under­payments were “deliberate and ­systemic” and that she was concerned about the “lack of action” to rectify them.

The allegations, which Ms Gleeson claims are backed up by a series of emails and ­conversations with the firm’s chief executive, financial chief and financial controller, will send shockwaves considering the firm’s prominent reputation for acting on behalf of disenfranchised workers.

Slaters, which is a major Labor donor and once employed former prime minister Julia ­Gillard and Greens leader Adam Bandt, has filed a defence rejecting Ms Gleeson’s “vague” and “embarrassing” claims, and ­continues to assert she was fired from the company for “serious or wilful misconduct”.

The firm first announced in July that it had underpaid about $300,000 to more than 100 employees, after workers who took leave at half-pay from 2011 to last year had their leave accrual calculated on a pro-rata basis, rather than a full-time basis.

At the time, Slaters chief executive Dina Tutungi told The Australian the incident occurred due to a human error by an employee who had since left the business.

Ms Tutungi said a payroll manager found the mistake in May last year while training another staff member, and had “picked up the error and quickly fixed it in the system”.

But according to Ms Gleeson’s statement of claim, financial controller Cess Bongcawel received an email on May 19 last year saying the leave under­payments “had been perpetrated contrary to independent advice and appeared to be deliberate”.

Ms Gleeson, who is represented by competing workplace law firm Maurice Blackburn, also claims she told Ms Tutungi in June this year that “the leave underpayment was a deliberate and systemic underpayment of accrual of leave”.

“There was evidence that the payroll manager at the time knew she was wrong based on advice she received,” Ms Gleeson’s statement of claim reads.

While the Slaters’ payroll ­software provider was immediately asked to ensure the issue did not affect employees going ­forward, Ms Gleeson, who was paid a base salary of $388,125, ­alleges the firm delayed reconciling the underpayments.

She claims she told Slaters’ head of risk Leanne Clark in June that she was “worried about the lack of action to rectify the leave underpayment”.

“It was Ms Gleeson’s responsibility to ensure that Slaters rectified the leave underpayment without delay,” the statement of claim reads.

Slater + Gordon, initially founded to service unions, is a large ALP donor, having reportedly donated $36,000 in Queensland and $5500 to the party’s federal branch in 2022.

Ms Gleeson says she was dismissed on the spot in July during a meeting with Ms Tutungi and audit and risk committee chair Jacqui Walters.

At the conclusion of the meeting, Ms Gleeson was handed a ­termination letter that accused her of “misleading the CEO and Board in relation to the underpayments arising from the miscalculation of leave entitlements”.

“As discussed, the company has formed the view that you have ­engaged in a range of concerning conduct in relation to the manner in which you have responded to identified underpayments,” reads the letter, attached to the statement of claim.

Ms Tutungi also accused Ms Gleeson of “intentionally ­delaying or deferring progress of remediation process in relation to underpayments arising from ­miscalculation of leave entitlements” and “misleading the CEO and board and/or failing to ­disclose to the CEO and board ­additional known concerns ­regarding other potential underpayments”.

This included “not disclosing to the CEO additional concerns known to you ahead of the CEO making media statements on 18 July 2024 about the underpayments arising from the miscalculation of leave entitlements”.

Ms Gleeson claims she took “every reasonable step” to ensure the CEO, CFO and the board were “fully informed of the existence and scope of the leave underpayment and the progress of investigating and remediating the leave underpayment”.

She alleges the firm acted ­unlawfully when terminating her employment, because it did so after she raised the firm’s “lack of action” when rectifying the leave underpayment.

Ms Gleeson also claims she was terminated in response to her complaint that the payroll team were “feeling victimised” by an ­internal investigation into the issue.

In its defence, Slater + Gordon denies Ms Gleeson’s allegations relating to unfair dismissal, and says “the reasons for the termination of the applicant’s employment are set out in the letter of termination”.

“Further, the respondent ­denies that the applicant is entitled to the relief claimed, or to any other relief,” the defence reads.

A Slater + Gordon spokes­person said Ms Gleeson “was ­terminated for serious or wilful misconduct”.

“The claims made in Ms Gleeson’s application are rejected,” the spokesperson said.

“Ms Tutungi’s comments are accurate and have been accurate at all times. As this matter is before the courts it would be inappropriate to comment further.”