A tumultuous week for Woolworths continues as CEO Brad Banducci's troubles deepen with legal issues piling up. One major blow to the company's reputation came when it was revealed in a Melbourne court that over 1,200 past employees in Victoria had been deprived of their long service leave entitlements, totaling $1.24 million in underpayments from late 2018 to early 2023.
In light of the breaches of the Long Service Leave Act, Woolworths and its associated company Woolstar acknowledged their wrongdoing, attributing the discovery of discrepancies to an internal audit of their IT systems. The company's legal representative, Saul Holt KC, emphasized Woolworths' decision to proactively report the underpayments to the Wage Inspectorate of Victoria was driven by a commitment to rectifying the situation and upholding ethical standards.
Despite the potential for an astronomical fine exceeding $10.25 billion due to the technical nature of the breaches, legal experts suggest that such an exorbitant penalty is unlikely. The looming court decision by magistrate Nahrain Warda on the matter is anticipated to shed light on the consequences Woolworths may face for its underpayment of staff, while also stirring debates about corporate responsibility and accountability in the business world.