A lesson for employers in Coles perpetual underpayment

Underpayment of wages happens when an employee or worker is paid less than their minimum legal entitlement. The Fair Work Ombudsman (the Ombudsman) explains that it happens often because of a mistake or payroll error, which can lead to serious penalties if not rectified quickly and permanently. However, it can also happen intentionally (i.e. wage theft) as is often seen in amongst minority groups of workers. Although underpayment is particularly rife in industries, such as the building and construction industry, it does not discriminate, and is an ongoing, widespread concern across the Australian workforce.

Coles Supermarket provides a prime example of underpayment and its repercussions. The supermarket giant has had a media presence for its underpayment of staff since approximately 2015 when an employee commenced proceedings for underpayment against the supermarket in the Fair Work Commission (the Commission). As a result of those proceedings, the Commission