Underpaid Optus workers get $7.8m in backpay from telco

Optus owes $5.4 million in wages and entitlements and $2.4 million in superannuation and interest. (Bianca De Marchi/AAP PHOTOS)

Thousands of Optus workers will receive more than $7.8 million in back pay from the telco after being underpaid for six years.

Singtel Optus self-reported the underpayments by Optus Retail, which operates the telco's Australian retail stores, to the Fair Work Ombudsman in April 2021 following an internal review.

Underpaid employees included retail consultants and store managers between January 2014 and March 2020.

They missed out on entitlements including weekend and public holiday penalties, meal allowances, overtime and annual and personal leave.

Optus also incorrectly calculated the mandated six-monthly reconciliations for employees who worked in stores that operated with extended trading hours.

The issue was blamed on poor payroll and time and attendance systems, human resources and governance practices.

Optus is paying back 3744 current and former employees more than $7.8 million, which includes $5.4 million in wages and entitlements and $2.4 million in superannuation and interest.

The payments range from $11 to $34,000 with the average sum being $2100.

Australia's second-largest telco has also been ordered to assess and back-pay impacted retail consultants and store managers and six-monthly and annual reconciliations between January 2020 and July 2023.

Ombudsman Anna Booth said the matter acts as a warning for employers to prioritise ensuring they are meeting their workers' lawful entitlements.

“Optus Retail’s lack of investment in human resources and poor governance led to long-term breaches and underpayments of its staff and large rectification costs," Ms Booth said.

“Boards must treat the lawful payment of their employees as a core governance requirement."

The company will commence an independent audit and additional compliance training, and improve payroll systems and processes after it entered into an enforceable undertaking with the Ombudsman, Optus executive Kate Aitken said.

"We have acknowledged that we did not comply with our obligations under the Fair Work Act 2009," Ms Aitken said.

"With the support of external experts, we have calculated the underpayments owed to current and former employees and have made every effort to ensure all entitlements have been or are in the process of being corrected and paid with interest."

As part of the undertaking, the telco will have to pay an initial contrition payment of $450,000 to the Commonwealth's Consolidated Revenue Fund. 

Optus will also make another contrition payment of four per cent of the total underpayments found in the next review under the terms of the undertaking. 

The company will also be required to apologise in writing and establish a helpline for current and former employees who were impacted.

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.


Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
AU$10
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
AU$5
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
AU$99
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

SEVEN DAYS FREE
Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store