Online retailer The Iconic has recently discovered additional underpayments worth nearly $201,000 while upgrading its payroll and human resources (HR) systems. This comes after a previous revelation that the company had underpaid more than $1 million to hundreds of casual staff between 2013 and 2019. The Iconic has since rectified all previous underpayments and back-paid 800 current and former employees in 2022.
During the process of upgrading its HR and payroll systems, The Iconic engaged independent external auditors to conduct payroll checks. These checks revealed that an additional 551 casual staff members were underpaid a total of $200,937 in wages, interest, superannuation, and lost earnings between 2020 and 2023.
The online retailer has expressed regret over the underpayments and stated that it takes its obligations seriously. The Iconic believes that the implementation of new payroll and HR systems, as well as ongoing vigilance in reviewing and upgrading payroll processes and data, will minimize the risk of such incidents occurring in the future.
The company has self-reported the additional underpayments to the Fair Work Ombudsman and established a dedicated team to provide affected staff with information and support. The Iconic is also in the final stages of remediation.
In an email to the affected workers, The Iconic’s new CEO, Jere Calmes, extended sincere apologies for the misapplication of the relevant awards. Some staff members were overpaid, but they will not be required to repay the excess funds. To show good faith, The Iconic has committed to paying all impacted employees a minimum of $50.
Q: How much were the additional underpayments discovered by The Iconic?
A: The Iconic uncovered underpayments totaling $200,937 for 551 casual staff members.
Q: Has The Iconic rectified all underpayments?
A: Yes, The Iconic has rectified all underpayments and back-paid 800 current and former staff members.
Q: What actions has The Iconic taken in response to the underpayments?
A: The company has self-reported the underpayments, established a dedicated support team, and is in the final stages of remediation.