‘Serious implications’ for businesses as reports payment, payroll systems disrupted during chaotic IT outage

Millions of workers could go without their wages in the wake of the global IT outage, amid reports multiple payment and payroll systems across Australia were crippled.

Businesses and workers were placed under more cost of living pressure during the global IT crisis as payment and payroll systems crashed at a time when they could least afford it.

The Global Payroll Association (GPA) reported that millions of workers around the world risked going without their wages as a result of the global IT outage.

GPA chief executive officer Melanie Pizzey told The Telegraph that they had been contacted by multiple clients who were unable to access their payroll software during the outage.

“Depending on the length of this outage, it could have very serious implications for businesses … particularly those who process payroll on a weekly basis,” she said.

“Furthermore, we could see a backlog with regard to processing payrolls for the coming month end which may delay employees from receiving their monthly wage.”

Users of cloud accounting software company Xero were reportedly caught up in the IT global outage which prevented some businesses from processing payroll and payments.

Griffith University business and consumer expert Graeme Hughes said there were reports that cloud accounting software Xero was caught up in the crisis.

The software company services more than four million businesses in Australia, New Zealand and the UK.

Mr Hughes said many businesses were able to use a work around to avoid major disruptions to operations by using alternate bank accounts they had available to process payments and payroll.

“While some were able to do that, some might have experienced a bit of a delay but I really think businesses try to be on the front foot with this and try to do the best thing by their staff,” he said.

For many businesses, particularly in hospitality, the global IT outage would have resulted in a loss of trade at a time when they were facing multiple increased costs. Picture: NewsWire / David Crosling

Mr Hughes said it was not a good time for any business to have any sort of technical outage or drop in trade.

“It is a period of time, especially for Australian businesses that are facing increased overhead and utility costs, increased rent, increased insurance costs and rising wages,” he said.

For many organisation, especially in the hospitality field, Mr Hughes said Friday would have been a bigger trading day and when you had a part day trade it meant they would have effectively lost money.

“Australians make on average 650 transactions per year compared to around 300 transactions 10 years ago,” he said.

“So we are transacting electronically more than ever before, so this impacts everybody so widely.

“We saw that with the confusion and disruption at the airports and shopping centres on Friday.”

Airports, banks, media, and airlines around the world are hit by a major IT outage on Friday. Picture: X

As the IT outage spread across the globe, office workers and customer-facing screens in places like supermarkets and airports were left facing the “Blue Screen of Death.”

Airlines, banks, media companies, petrol stations and other major businesses and retailers all came to a grinding halt as a result.

“This really highlights the need for contingency planning, no system is impalpable, you cannot have just one way of doing things,” Mr Hughes said.

“If something occurs in business you need a fail safe mechanism to ensure you have seamless operations.

“We are in the 21st century now, so we need to act like 21st century businesses.

“From a consumer standpoint it highlights the whole cashless society and how that is sometimes convenient when it works, but when it doesn’t work it throws everything out of the window.

“It does bring a cashless society into question and highlights that cash is still an important component.”

An Australian Banking Association spokesperson said impacts on banks and payments systems had been relatively minor, with any disruptions having already been remedied or were in the process of being gradually restored.

“Banks will continue to monitor for any further impacts to services,” the spokesperson said.

Originally published as ‘Serious implications’ for businesses as reports payment, payroll systems disrupted during chaotic IT outage