In a significant ruling, Australia’s workforce regulator has mandated Hamilton Island Enterprises (HIE), the operator of Queensland’s luxury Hamilton Island resort, to repay nearly $30 million in wages to its employees. This decision follows a comprehensive investigation by the Fair Work Ombudsman that began in 2020, revealing widespread underpayment of 2,152 current and former salaried staff between December 2014 and the end of 2022.
HIE manages a variety of island businesses including accommodations, restaurants, marina services, and the airport. To date, the company has back-paid staff a total of $28.1 million. As part of an enforceable undertaking agreement, HIE must implement a series of workplace reforms. These include conducting an independent audit of salaried workers, appointing a compliance officer for workplace laws, and establishing dedicated channels for employee inquiries. The company is also required to hold regular engagement and feedback sessions with employees.
The investigation uncovered that common entitlements such as overtime rates, weekend and public holiday penalties, broken-shift allowances, and annual leave loading were frequently underpaid. On average, each affected worker is owed approximately $8,000, with one individual receiving over $119,000 in back pay. Additionally, there remains an outstanding amount of $250,984 owed to 32 employees who have yet to be contacted by investigators.
HIE has also been directed to make a contrition payment of $750,000. The investigation was initiated after numerous workers sought assistance regarding their pay, many of whom were employed in food and beverage roles, front-of-house positions, or as cleaners. While some affected workers were on temporary visas, specific data regarding their visa statuses was not disclosed.
In a statement, HIE expressed its remorse, stating, “We unreservedly apologise for these underpayments and would like to assure employees that finalising all repayment is an absolute priority for our business.” The company emphasized that the underpayments did not align with its values and pledged to enhance compliance through new time and attendance monitoring systems.
The Fair Work Ombudsman has issued a stern warning to employers, particularly those utilizing salary-based pay structures. “We want this to be a real message to employers to ensure they calculate compliance with awards accurately and consistently,” the ombudsman stated, highlighting the importance of fair compensation in the workplace.
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