Westpac has become the latest Australian institution to become embroiled in an underpayment scandal after the major lender admitted to owing $8 million to 8000 staff.
The nation’s oldest bank said this afternoon that an internal review had revealed a calculation error for long service leave entitlements.
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It blamed the methodology used which failed to determine long service leave entitlements in situations where staff members had changed their work arrangements, such as moving from full-time to part-term work.
The system failure also led to some workers being overpaid but the bank said it would not be asking any staff to return what they were given.
“We apologise to anyone impacted by these errors and our priority is to make payments as
soon as possible,” Westpac group executive for enterprise services Alastair Welsh said.
“For long service leave entitlements, different rules apply to different employees based on their employment history and work arrangements. Regrettably, our system didn’t correctly capture the right methodology every time.
“We are putting in place measures to ensure employee long service leave is correctly