Fashion retailer Uniqlo has apologised to current and former employees and is working to organise back-payment after discovering underpayments in the group’s Australian operations to the value of $25 million.
The global casual-wear brand filed documents with the corporate regulator on Monday outlining its financial performance for the 12 months to August 31, 2022.
As part of its financial report, the company said it had made provisions of $21.1 million for the 2021 financial year and $3.9 million for its 2022 financial year after the business discovered the company did not meet all its obligations for certain past and present staff under the general retail industry award.
This led to those employees being owed additional wages and superannuation due to errors in calculation of their entitlements. The total provisions of $25 million include salary, interest and superannuation to be back-paid to staff.
A Uniqlo Australia spokesperson said on Tuesday that errors in the calculation of entitlement were identified after a specialist firm completed a review of the company’s systems.
“Our team is very important to us and we are sorry to all valued current and former employees impacted by these errors. We are working to rectify and remediate these issues, with back payment and interest, as quickly as possible,” the spokesperson said.
“We have reported the issue to the Fair Work Ombudsman and are presently contacting those affected.”
The underpayments occurred between July 1, 2015, and June 30, 2022, with about 7900 staff affected. The company is continuing to contact staff to organise back payment and interest.
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