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Woolworths’ historic pay bungle dents half-year profits
Woolworths’ eyewatering bill to repay thousands of team members for an historic pay bungle has torn a hole in the supermarket giant’s half-year profit.
It follows a landmark Federal Court ruling last September, when Justice Nye Perram found Woolworths — along with rival Coles — failed to comply with their obligation to keep accurate employment records, including rosters, overtime and other entitlements owed under the retail award, of salaried workers.
On Wednesday, Woolworths warned investors it had now set aside $406 million in potential remediation for salaried team leaders, plus another $304m for interest, superannuation and payroll taxes.