The NSW Minister for Industrial Relations has signaled a renewed focus on long service leave compliance, after issuing a record fine for underpayment.
The NSW Employee Relations Inspectorate uncovered systemic underpayments of long service leave to 223 workers arising from payroll system errors at Mosaic Brands Limited and its subsidiaries.
This led to a $29,000 fine, which is a NSW record for underpaying long service leave entitlements.
In the Downing Centre Local Criminal Court, the Magistrate concluded that while the underpayments were not deliberate, the offences were too serious and too widespread for there to be no penalty imposed.
It comes as Minister for Industrial Relations Sophie Cotsis looks to expand long service leave through a portable leave scheme for gig, disability, home care and other precarious workers – a key election promise of the Minns Labor Government.
The scheme would allow gig workers to accrue leave and entitlements in their industry, rather than through their employer.
"The NSW Government is committed to standing up for workers and investigating businesses who’re short-changing their staff, particularly at a time when so many individuals and family are doing it tough," Cotsis said.
“I would like to acknowledge Mosaic Brands Limited and its subsidiaries commitment to ensuring they pay long service leave correctly.”
A Mosaic Brands spokesperson told ragtader.com.au the company has fully cooperated and repaid staff.
“Mosaic Brands pays more than $140 million dollars in annual wages to its 3,000 plus strong team across Australia.
“These long service leave payments relate to a total of approximately $80,000 over six years.
“In imposing a $29,000 fine the Court noted that it was not deliberate, the company had fully cooperated and repaid staff.”
Mosaic Brands Limited and two of its subsidiaries, Noni B Holdings Pty Limited and Pretty Girl Fashion Group Pty Ltd fully cooperated with the investigation and pled guilty to 324 offences.
This is the largest ever number of offences prosecuted simultaneously in NSW for long service leave underpayments.
Mosaic Brands Corporate also entered into a Deed which commits the fashion giant to pay for an independent third party to conduct a full audit of their compliance with long service leave legislation.
The terms of the Deed require that the third party will be under the instruction of the NSW Government’s inspectorate unit.