Australia Post | Payroll system errors force firm to repay millions to 3,600 underpaid staff

Payroll system errors force firm to repay millions to 3,600 underpaid staff

Australia Post has been forced to admit that, due to a series of significant payroll errors, 3,600 employees were underpaid by a total of $5.6million AUD (£2.9million) over the period of a decade.

The news was announced by Australia Post, which confirmed last week that errors in the organisation’s payroll system meant that around 3,600 current and former employees had been underpaid between 2014 and 2023.

“We unreservedly apologise and are proactively contacting impacted current and former team members to ensure they receive their remediation payment,” said Sue Davies, Australia Post’s executive General Manager for People and Culture.

“We have made the necessary adjustments to our systems and processes and will continue to undertake regular audits to ensure that any issues are promptly identified and addressed,” Davies continued.

The cause of the issue were errors around pay entitlements around holidays, personal leave and other lesser abnormalities in day-to-day functions. And whilst many of the affected workers continue to be employed by Australia Post, the organisation confirmed that it was working to contact those for whom details and employment had changed.

“Former team members who have changed their contact details since leaving Australia Post and think they might be impacted can visit,” a release from the organisation stated.

The error was revealed after a recently-completed compliance review. Australia Post said its payroll system had now been updated and that it had self-reported the matter to the Fair Work Ombudsman.

“Australia Post will fully remediate any shortfall owed to current and former impacted team members with interest and superannuation where applicable, for the full period,” it continued in the media release.

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The Community and Public Sector Union, which represents current and former postal workers, noted publicly it was made aware of the issue shortly after the discovery was made.

“We are currently in the process of contacting our members who may have been impacted to ensure they are supported and receive the payments they are entitled to,” noted Brooke Muscat, the CPSU National President.

“Australia Post has taken the appropriate steps after identifying the underpayment, and we will continue to work with them until the matter is fully resolved.”

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