Clothing giant Zara is considering its long-term future in Australia after it was revealed Aussie staff had been underpaid $2.6 million.
The clothing store hasn't been performing well in the Australian market and at the end of last year had borrowed around $44 million from its parent company in Spain since coming to Australia in 2011.
“Although there is significant uncertainty surrounding future events, the company’s directors are constantly monitoring the evolution of the situation in order to successfully address any possible impacts, both financial and non-financial, that may arise,” Zara’s local directors said.
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Not the first Aussie pay scandal
Zara is not the only company on Aussie shores to underpay its workers, in fact there have been a number of pay stuff-ups in the last few years.
Around 60 junior staffers for federal MP’s were underpaid over the course of four years - the affected employees were paid between $51,000 and $68,000 per year.
The FWO recovered a total of $43,204 in unpaid wages to 322 employees, the Ombudsman revealed.
Retail workers are entitled to one paid 10-minute break for working three hours and another break for five hours, in addition to an unpaid lunch break, Finance Sector Union national secretary Julia Angrisano said.
The major bank admitted that an internal review unearthed a calculation error that saw long service leave entitlements wrongly calculated, which led to both underpayments and overpayments.