Fair Work Ombudsman orders reforms and $800,000 contrition payment
Westpac has signed an Enforceable Undertaking (EU) with the Fair Work Ombudsman (FWO) after back paying nearly 47,000 employees more than $50 million in wages.
The underpayments, which spanned from January 2014 to February 2025, were attributed to systemic failures across payroll systems, governance and compliance oversight.
According to the FWO, Westpac breached multiple enterprise agreements, underpaying staff casual loadings, minimum wages, weekend penalties, termination and leave entitlements, and superannuation.
Payments ranged from under $5 to more than $56,000, with the average repayment around $1,000. More than 10,000 current employees had their leave balances adjusted as part of remediation efforts.
To date, Westpac has returned $50.26 million in wages, $9 million in interest and superannuation, and paid $90,490 to the government’s unclaimed monies account for 372 former employees who could not be located.
The bank must also pay an $800,000 contrition payment.
The EU requires Westpac to strengthen oversight, provide training on entitlements, engage independent audits, and create a dedicated employee channel for payroll concerns. It must also consult with the Finance Sector Union and improve internal reporting to its board.
Fair Work Ombudsman Anna Booth said the EU recognises Westpac’s cooperation and commitment to compliance, but warned the case highlights the risks of inadequate payroll governance.
“We cannot overstate the importance of sound governance and proper board oversight of employee wage and entitlement compliance,” Booth said.
“I commend Westpac for the commitments it has made to strengthening its processes on worker voice and executive governance. Ensuring that workers have real mechanisms and ongoing supports to raise concerns and ask questions means small issues can be addressed before growing into widespread problems.
“Other large corporate employers should take note of the positive changes that Westpac has made as part of this EU. A proper investment in meeting employer obligations will see workers receive their legal entitlements, at the same time as reducing the risks and costs for the business associated with non-compliance.”
Westpac apologises
In comments sent to MPA, Westpac explained how its uncovered these issues as part of its own review in 2020.
"When we found them, we immediately moved to put things right," said the spokesperson. "We’re genuinely sorry this happened. Paying our people correctly is a fundamental obligation which we take seriously and we apologise again to all affected employees."
The spokesperson added: "As part of our comprehensive remediation program, we repaid those affected including employees who have since left the company. We did not ask anyone who has been overpaid to repay any money.
"We’ve also updated our systems and processes, investing significantly to better manage entitlements."
