Japara penalties for overtime miscalculation

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Steven Troeth of Gadens Lawyers this week detailed the Enforceable Undertaking Japara agreed with the Fair Work Ombudsman after Japara identified and volunteered it had short paid $4.8M to employees over six years.

Despite listing on the stock exchange last July for a value of $707M, it turns out Japara was still using a manual payroll system. In November it discoverer that it had been short paying overtime when staff had worked more than 8 hours on a day shift, 10 hours on a night shift or more than 76 hours in a fortnight.
4,850 current and former staff were affected.

The Ombudsman decided not to prosecute; the rectification agreed included:
– Fully electronic time recording system
– Engage a third party auditor and maitani for three years
– Provide access to indepeandent financial advice to current employees short paid by over $10K
– Donate $20K to Alzheimer’s Australia fro medical research

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