Sunglass Hut to back-pay almost $2.3m of underpaid overtime wages

Luxottica Retail Australia Pty Ltd, the company trading as Sunglass Hut, self-disclosed that it had underpaid staffers after failing to agree in writing to a regular pattern of working hours and days for part-time workers.

The company therefore failed to pay overtime rates for work performed outside regular hours, the Fair Work Ombudsman said.

Staffers employed in roles serving customers in 253 Sunglass Hut stores were affected.

The company underpaid workers almost $2.3-million in six years, from January 2010 to October 2016.

Individual underpayments ranged from $4 to almost $43,000.

The Fair Work Ombudsman was told the error was due to a poor understanding of the application of the General Retail Industry Award 2010.

The issue was discovered during an internal audit in August 2016.

Sunglass Hut has back-paid a total of more than $1.48-million to 457 staffers. More than $815,000 remains to be back-paid.

The company has entered into a court-enforceable undertaking with the Fair Work Ombudsman.

Fair Work Ombudsman Sandra Parker said Luxottica Retail Australia had committed to overhaul workplace practices and rectify all underpayments.

"This matter highlights that if employers incorrectly apply award conditions, it can have extensive and expensive consequences across the business for years to come," she said.

"This outcome should also serve as a warning to all businesses that they need to actively check that they are paying their staff correctly."

The company has to issue a letter of apology to each affected worker.

It also has to pay for external auditors to check pay and conditions for part-time, full-time and casual workers every year until 2022.

"Sunglass Hut breached workplace laws and their conduct falls short of lawful obligations to their employees, and community expectations," Ms Parker said.

The company will make a $50,000 payment to the National Association of Community Legal Centres as a gesture of contrition.

The Fair Work Ombudsman suggested people who had worked for Sunglass Hut and had employment queries contact SunglassHut.HR@luxottica.com.au.

It said employees and employers could contact the Fair Work Ombudsman for advice and assistance about workplace rights using the Fair Work Infoline on 13 13 94, or www.fairwork.gov.au. A free interpreter service was available on 13 14 50.

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