A Sunraysia almond grower has agreed to pay back more than $500,000 to staff after Fair Work inspectors found they had underpaid workers over several years.
Brownport Almonds Pty Ltd signed an enforceable undertaking (EU) with the Fair Work Ombudsman after they conducted a payroll audit from 2016-2021, which found it had underpaid 197 current and former employees a total of $501,511, including superannuation.
The Ombudsman found the company did not apply each employee's correct job classification under the Horticulture Award.
The Fair Work Ombudsman began investigating the company in May 2021 after being contacted by workers who worked at the company's farm and processing facility in Hattah.
Investigators found the company, which trades under the Bright Light brand, paid workers a flat pay rate, even if they were required to work overtime or shiftwork, which was insufficient to cover their lawful minimum entitlements.
The workers were entitled to higher pay rates because they were performing duties of a higher classification rather than the level 1 classification they had been paid under.
Most underpaid employees were employed on a full-time or casual basis and worked in harvesting and production roles, including working on tractors and with machinery operators.
Fair Work Ombudsman Anna Booth said an EU was appropriate as the company had cooperated with the investigation and demonstrated a strong commitment to rectifying underpayments.
"Under the enforceable undertaking, Brownport Almonds has committed to implementing stringent measures to ensure all its workers are paid correctly," Ms Booth said.
"These measures include commissioning, at its own cost, two annual independent audits to check its compliance with workplace laws and provide the results to the Fair Work Ombudsman.
"Improving compliance in the agriculture sector is a priority for the Fair Work Ombudsman, and this matter demonstrates the importance of employers placing a high priority on meeting their legal obligations."
Ms Booth said under classification of workers "deprives hard working employees of the pay they are entitled."
"We expect all employers to invest the time and resources to ensure all legal entitlements are met," she said.
Individual back payments ranged from $4 to almost $12,500, with the average back payment being $2,570.
Brownport Almonds had already back-paid most employees, including current and former employees, and under the EU, must back-pay all staff by the end of January 2024.
While the company avoided a fine, it will have to make interest payments to all affected employees, calculated at 6.1 per cent per annum.
Brownport Almonds must also make a $50,000 contrition payment to the Commonwealth's Consolidated Revenue Fund.
The investigation found Brownport Almonds also failed to make and keep proper records of overtime hours worked by the employees.
