The controversy surrounding Crown’s underpayment of long-service leave has culminated in the company agreeing to pay over $500,000 following a thorough regulatory investigation. The Wage Inspectorate Victoria identified non-compliance with the Long Service Leave Act 2018, which mandates that employees with at least seven years of continuous service are entitled to long-service leave or compensation for any unused leave upon termination. According to the findings, numerous former employees were affected by these underpayments, necessitating redress.
In response, Crown made payments totaling $469,999 to these former employees, including interest and a voluntary 10% addition. This resulted in total compensatory payments exceeding half a million dollars, highlighting the significant financial impact on affected workers. Commissioner Robert Hortle of the Wage Inspectorate Victoria underscored the positive implications of these payments, asserting that they would substantively improve the lives of the former employees involved.
Additionally, Crown Melbourne and Crown Resorts received formal warnings under the regulator’s Compliance and Enforcement Policy. This measure indicates the seriousness with which the regulator views adherence to long-service leave entitlements. Moving forward, Crown has introduced new procedures and measures to ensure compliance with Victoria’s long-service leave laws, aiming to prevent such issues from reoccurring and to demonstrate a commitment to fair employee compensation practices.