Crown pays over $500,000 following regulator’s investigation into long service leave underpayments

Over $500,000 has been paid to Victorian workers, and Crown Melbourne and Crown Resorts (Crown) have received formal warnings after a Wage Inspectorate Victoria investigation uncovered hundreds of staff were underpaid their long service leave entitlements.

The Wage Inspectorate, which enforces the state’s long service leave laws, began investigating Crown in May 2022 after identifying an underpayment to a former employee who had contacted the regulator for advice.

The investigation uncovered 309 former employees had been underpaid their long service leave entitlement when their employment ended, between November 2018 and December 2022.

Crown subsequently made remuneration payments totalling $469,999, plus interest and a voluntary 10% loading as a contrition payment, bringing the total amount paid to workers to over $500,000.

Crown has provided the Wage Inspectorate with information about additional measures it has implemented to ensure future compliance with Victoria’s long service leave law.

The decision to issue formal warnings was made in line with the Wage Inspectorate’s Compliance and Enforcement Policy.

Quotes attributable to Robert Hortle, Commissioner of Wage Inspectorate Victoria

“Wage Inspectorate Victoria’s investigation has ensured over $500,000 is in the pockets of Victorians, where it belongs and where it will make a significant difference to their lives.”

“The Wage Inspectorate was set up to ensure Victorians received their hard-earned entitlements and today's outcome shows that's what we continue to do.”

“Some of Australia’s biggest companies have fallen foul of long service leave laws, including Crown, Commonwealth Bank, Optus, Woolworths and Coles, so boardrooms across the nation should be asking questions about their own long service leave obligations and governance.”

Background

The Long Service Leave Act 2018 is a Victorian law that provides long service leave for employees who have worked continuously with one employer for at least 7 years. It applies to work that is full time, part time, casual, seasonal and fixed term.

After at least 7 years’ continuous employment with one employer, an employee is entitled to take their long service leave or be paid any unused long service leave entitlement on their final day of employment.

Victorian employees will be covered by the Act unless they have a long service leave entitlement from another source, such as a registered agreement, award or another law.

Further information can be found at wageinspectorate.vic.gov.au.