Ace Breaking News – In short: Hamilton Island Enterprises has paid back more than $28 million to staff after a Fair Work investigation that found thousands of salaried workers were underpaid for years. The operator still owes more than $250,000 to workers, who have yet to be contacted by investigators.
What happens next:
The operator will be forced to make a $750,000 contrition payment.
Australia’s workforce regulator has ordered the operator of Queensland’s luxury Hamilton Island resort to pay back nearly $30 million in wages.
Hamilton Island Enterprises (HIE) manages various businesses on the island, including accommodation, restaurants, the marina, airport, utilities, and emergency services.
The Fair Work Ombudsman’s investigation, which began in 2020, found 2,152 current and former salaried employees were not paid correctly between December 2014 and the end of 2022.
HIE has signed an enforceable undertaking agreement and, to date, has back-paid staff $28.1m.
The company is also required to implement a range of workplace changes, including an independent audit of salaried workers.
It must appoint a workplace laws compliance officer, have a dedicated hotline and email for employee queries, and have regular employee engagement and feedback sessions.
The ombudsman said overtime rates, weekend and public holiday penalties, broken-shift allowances, and annual leave loading were the most common entitlements the company underpaid.
The average back payment per worker was approximately $8,000.
One person received more than $119,000.
Another $250,984 owed 32 employees, who investigators are yet to reach, remain outstanding.
HIE has also been ordered to make a contrition payment of $750,000.
HIE says it is ensuring its workers are properly remunerated going forward. (ABC Tropical North: Melissa Maddison)normal
Company apologises
The Fair Work Ombudsman launched the investigation into the company in 2020 after numerous workers sought assistance.
Many underpaid workers worked in food and beverage roles, front-of-house positions, or as cleaners.
The Fair Work Ombudsman confirmed some workers were on temporary visas but said data on the workers’ individual visa statuses or ages was not available.
HIE apologised to affected workers and said it had contacted current and former employees.
“We unreservedly apologise for these underpayments and would like to assure employees that finalising all repayment is an absolute priority for our business,” it said in a statement.
HIE said the underpayments were “not in keeping” with the “values” of the company and that it would ensure future compliance by implementing new time and attendance monitoring systems.
The Fair Work Ombudsman issued a warning to employers, particularly those who relied on salary-based pay structures.
“We want this to be a real message to employers, particularly those who use salary payments, to not just calculate once if a salary is in conformance with an award,” the ombudsman said.
‘Problem is endemic’
University of Sydney Associate Professor John Mikler said the nature of employment on Hamilton Island made it difficult for workers to challenge unfair conditions.
“If you want to get a job on Hamilton Island, you’re dealing with one company,” he said.
“They can essentially say, ‘Here are the conditions — take them or leave them.’”
He added that highly skilled workers may have some bargaining power, but unskilled workers, young employees, and those on temporary visas were particularly vulnerable to underpayment.
He said appropriately remunerating staff was not isolated to Queensland.
“If you’re a really large operator, you might just regard that as the cost of doing business,” he said.
“This problem is endemic throughout the Australian economy, not just in Northern Queensland.”
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