Star Entertainment begins A$13m employee repayment process
ASX-listed firm actions reimbursement after review into six-year period of employee underpayment
Australian land-based and online F2P operator Star Entertainment Group is set to reimburse employees A$13m (£6.8m) due to historical underpayment failings.
In a trading update, the ASX-listed firm said it had identified underpayment of wages for both current and former employees and has initiated a repayment process.
The underpayment was flagged as a result of salaried employees not being “better off overall” as their annual salary did not compensate them for award entitlements including overtime.
The underpayments occurred over a six-year period and impacted around 2,200 employees.
Star Entertainment said it had accounted for the $13m reimbursement for its H1 2022 accounts and noted the total accounted for estimated back payments, interest and superannuation contributions.
Matt Bekier, Star Entertainment CEO, said: “We apologise to any team member impacted by the payment shortfall and we are committed to doing the right thing by acting transparently. Our priority is to address this issue and to ensure that it doesn’t happen again.”
The operator confirmed it has worked to improve its payroll system, processes and training schemes to ensure similar errors would not occur in the future.
Star Entertainment had also informed the Fair Work Ombudsman and the United Workers Union regarding the issues.
Imogen Beynon, United Workers Union casinos deputy director, said: “It’s always concerning when workers are underpaid. We expect that the company will quickly rectify the issue for all workers and if any of our members are impacted that any monies owed are repaid quickly and in full.
“We know from this example and many others that incidences of wage theft and underpayments are reduced when people are covered by a union agreement,” she added.