Best & Less forced to repay $5.2 million in underpayments to managers

Discount retailer Best & Less has repaid more than $5.2 million in underpayments to hundreds of its store managers.

They will also pay $200,000 to the Commonwealth Government as a form of punishment for the wage theft.

Best & Less forced to repay $5.2 million

Best & Less has 189 Australian stores selling clothes and household linen in addition to an online retail platform.

The retailer conducted an internal review in December 2020 which found its had failed to pay its store managers the legal minimum wage for their position.

The review also found that store managers across the country missed out on penalty rates, overtime, allowances and annual leave loading.

The underpaid employees managed Best & Less stores with many performing overtime, weekend and night work.

The underpayments happened between 2013 and 2020 and totaled $5.2 million plus an additional $500,000 in superannuation.

Best & Less underpaid one store manager a staggering $42,144, while the average underpayment totaled $7600.

Best & Less also failed to make and keep proper records of hours worked by store managers and assistant store managers.

The underpayments happened between 2013 and 2020 and totaled $5.2 million plus an additional $500,000 in superannuation.

Enforceable Undertaking

Best & Less has entered into an Enforceable Undertaking (EU) with the Fair Work Ombudsman.

Under the terms of the agreement, the company must back-pay the 686 current and former employees by October.

Moreover, Best & Less must make a $200,000 contrition payment to the Commonwealth’s Consolidated Revenue Fund as a form of punishment for the wage theft.

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‘Set and forget’ mentality

Industrial advocate Miles Heffernan said companies that ‘set and forget’ their pay systems risk underpaying their workers.

“The minimum wage, Awards and Enterprise Agreements are constantly changing and employers have a responsibility to stay across those changes,” he said.

“There is no excuse for a business as big as Best & Less to get caught out like this”.

Mr Heffernan advised anyone who is not receiving their proper and wages and entitlements to seek urgent expert advice.

“At Fair Work Claims, we know wage theft laws intimately and have extensive experience recovering every last cent owed to our clients,” he said.