GEELONG: Cotton On has back-paid $278,000 to thousands of employees following an investigation by the Fair Work Ombudsman.
The casualwear retail giant was found to have contravened workplace laws when it failed to pay staff for attending training sessions and staff meetings between February and December 2008.
Cotton On voluntarily repaid the wages to the 3289 employees affected last year. The average back-pay amounted to $84.56 per employee.
The retailer has composed an apology in which it “expresses its since regret and apologises to all past and present employees for failing to comply with its lawful obligations”.
As a result of the contravention, the apparel giant has entered into an Enforceable Undertaking with the Fair Work Ombudsman, promising it will ensure future compliance with the Fair Work Act.
The Enforceable Undertaking is a mechanism the Fair Work agency uses to avoid costly civil litigation. As part of the agreement, Cotton On acknowledged there was sufficient evidence and public interest to justify the Ombudsman initiating legal action against the company.
The Enforceable Undertaking requires Cotton On to post an apology to staff, signed by CEO Peter Johnson, in all its stores and on its website and Facebook page.
Cotton On must also provide a written report to the Ombudsman each year for the next three years to demonstrate staff are being paid correctly. The company's human resources managers must undertake workplace relations compliance training within the next three months.
Cotton On Group operates the Cotton On, Cotton On Kids, Cotton On Body, Rubi, Factorie and Typo brands and is owned by Tania and Nigel Austin. Founded in 1991, the Group operates 600 stores across Australia, New Zealand, Asia and the US.