OTR, a prominent service station chain, has recently committed to rectifying a significant issue concerning the annual leave entitlements of its employees. Following an investigation by the Fair Work Ombudsman (FWO), OTR has agreed to repay or credit $2.3 million in annual leave entitlements to 1,500 individuals working with the company in South Australia, Victoria, and Western Australia.
The investigation, prompted by inquiries from OTR employees, revealed that certain workers were not correctly categorised as shift workers, thereby missing out on the entitlement to five weeks of annual leave, unlike the standard four weeks for non-shift workers.
FWO’s Ombudsman, Anna Booth, highlighted the importance of employee queries in initiating the investigation. She explained that numerous inquiries to the FWO’s information line indicated that workers believed they were entitled to shift worker benefits, including extended annual leave.
Upon investigation, OTR conducted its own review, uncovering that 1,524 employees had been deprived of their annual leave entitlements between July 2018 and February 2023. As a result, OTR has agreed to reimburse 934 former employees a total of $975,000, including $48,415 in interest, and credit approximately $1.3 million worth of annual leave to 590 current employees.
OTR, with over 150 stores nationwide and a significant presence in South Australia, Victoria, and Western Australia, has acknowledged the issue and cooperated fully with the FWO. In addition to rectifying the situation, OTR has agreed to pay a $150,000 “contrition payment” to the federal government’s consolidated revenue fund.
Anna Booth emphasised that this case should serve as a cautionary tale to all employers, urging them to ensure the correct categorisation of their workers. She stressed that understanding the hours and patterns of work is essential, especially in determining shift worker status.
Moreover, Booth expects OTR’s new owners, Viva Energy, to honour the agreement made by OTR and take measures to prevent similar issues in the future.
The Retail and Fast Food Workers Union secretary, Josh Cullinan, applauded the outcome but called for broader investigations into the console operator industry to address other potential issues affecting workers’ rights.
In conclusion, OTR’s commitment to rectifying the situation underscores the importance of fair treatment and adherence to employment regulations, serving as a reminder to all employers to ensure compliance with entitlements and classifications for their workforce.
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