Uniqlo addresses underpayment issue through remedial measures

The fashion retailer is currently reaching out to affected employees to provide appropriate compensation


Uniqlo Australia recently conducted an internal audit, which brought to light a significant issue of underpayments affecting their staff over a span of seven years. 

The company has recently acknowledged multiple discrepancies in the calculation of wages and superannuation payments during the period of July 1, 2015, to June 30, 2022 as stated in an email shared with Inside Retail.

In response to the findings, Uniqlo promptly informed a former employee via email that they were conducting a remediation program to address their non-compliance with the General Retail Industry Award, which governs employment practices in the Australian retail sector. The company acknowledged that the oversight occurred in their rostering process and payroll system, resulting in the underpayment of several  staff members.

Furthermore, the company has clarified that the underpayments were inadvertent, resulting from a genuine oversight on their part. The retailer is actively collaborating with the Fair Work Ombudsman, an agency responsible for ensuring workplace law compliance in Australia, to evaluate and amend the situation. In order to prevent similar issues from occurring in the future, Uniqlo is revamping and investing in their HR and payroll processes. The involvement of external auditors is helping the company gain expert guidance and insights.

While the exact number of workers affected during the seven-year period has not been disclosed, Inside Retail has reached out to Uniqlo Australia for further details. The company’s commitment to addressing the underpayment issue and improving their internal systems demonstrates a proactive approach to rectifying past mistakes and ensuring fair and compliant practices moving forward.

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