Rectifying Wrongs: The Iconic's Apology for Uncovered $201,000 in Underpayments

  • Business
  • Tuesday, 21 November 2023 14:39

"Unveiling Unseen Shortfalls: The Iconic Discovers $201,000 in Additional Underpayments Amid Payroll and HR System Upgrades

Amid ongoing efforts to overhaul its payroll and HR systems, online retailer The Iconic has unearthed an additional $201,000 in underpayments, compounding previous revelations of having underpaid hundreds of casual staff by over $1 million from 2013 to 2019. The fashion and lifestyle giant, which has recently trimmed its workforce by 116 jobs, had already rectified underpayments totaling $1.38 million for 800 current and former staff in 2022 following two audits of its accounting systems.

Although the previous underpayments have been addressed, The Iconic's proactive measures to upgrade its HR and payroll systems led to the discovery that 551 casual staff members had been underpaid $200,937 in wages, interest, superannuation, and lost earnings between 2020 and 2023. Expressing deep regret for the recurring issue, The Iconic issued a statement emphasizing its commitment to minimizing future risks through upgraded systems and continuous vigilance.

The retailer has reported the additional underpayments to the Fair Work Ombudsman, established a dedicated support team for affected staff, and is in the final stages of remediation. In an email to impacted workers, the new CEO, Jere Calmes, extended sincere apologies for the 'misapplication of relevant awards.' While some staff were overpaid (with no repayment requested), The Iconic has committed to providing all affected employees a minimum of $50 as a goodwill gesture."

"In the aftermath of uncovering additional underpayments totaling $201,000, The Iconic faces the aftermath of its ongoing efforts to revamp payroll and HR systems. This revelation follows the company's prior acknowledgment of having underpaid casual staff over $1 million between 2013 and 2019. While the fashion and lifestyle retailer has diligently rectified past errors, the newly identified underpayments, affecting 551 casual staff, underscore the complexities of navigating payroll intricacies.

The Iconic, expressing deep regret for the recurring issue, has taken decisive steps, self-reporting the findings to the Fair Work Ombudsman, establishing a dedicated support team, and progressing toward the final stages of remediation. The commitment to upgrading systems and maintaining vigilance in reviewing and enhancing payroll processes aims to mitigate future risks. The CEO's sincere apology to affected staff, coupled with a minimum goodwill gesture of $50 for impacted employees, signifies the company's dedication to addressing the misapplication of awards and fostering a renewed sense of trust within its workforce. As The Iconic navigates this chapter of rectification, its proactive measures and commitment to transparency will play a pivotal role in rebuilding confidence in its employment practices."