Fair Work Ombudsman vows to hold BHP to account over $430m underpayment

Mining giant BHP has been accused of underpaying employees a staggering $430m for over 10 years.

Fair Work Ombudsman Sandra Parker condemned the purported error as "not good enough" and vowed to take a tough stance against employers who fail to rectify their payroll issues.

BHP's underpayment blunder involved incorrectly deducting public holidays as leave for over 28,000 employees, a mistake that reportedly went unnoticed for 13 years. The supposed magnitude of the error and the prolonged duration have left many questioning how such a high-profile and well-resourced company could have allowed this to happen.

Speaking to The Australian Financial Review, Parker stated: "In 2023, it's not good enough. Why was this not picked up earlier? What's going on in a company where there's been 13 years of underpayment?"

Parker issued a clear message to major corporates, assuring them that the Fair Work Ombudsman would hold them accountable for their payroll practices, regardless of their employees' salary levels. She emphasised that failing to conduct regular payroll audits could lead to more severe consequences if workers or other parties were to report any discrepancies.

BHP's $430m underpayment was reportedly the result of the company incorrectly treating public holidays as work days. It allegedly failed to update its payroll software in accordance with the National Employment Standards.