Hamilton Island workers underpaid $28 million

Hamilton Island, Queensland, Australia. | Newsreel
Workers on Hamilton Island were owed millions in back-pay. | Photo: Hyper Gurl (iStock)

Workers on Hamilton Island have received more than $28 million in backpay, following a Fair Work investigation.

Fair Work Ombudsman Anna Booth said the operators of the resort, in Queensland’s Whitsundays, had also signed an Enforceable Undertaking (EU).

Ms Booth said back-payments, which involved more than 2000 employees, ranged from less than $5, up to $119,446 in one instance, with the average back-payment about $8000.

She said most of the underpayments were the result of paying many full-time employees annual salaries that were insufficient to cover their minimum Award entitlements, given many often performed overtime, shift-work and work attracting penalty rates.

“The most common entitlements underpaid included overtime rates, weekend and public holiday penalty rates, broken-shift allowances and annual leave loading.”

Ms Booth said the Enforceable Undertaking (EU) applied to Hamilton Island Enterprises Limited (HIE) which operated a range of accommodation businesses on Hamilton Island, as well as ancillary businesses including the marina, airport, retail stores, restaurants, and leisure and recreation facilities.

She said the large majority of the underpaid staff worked across the range of businesses HIE operated on Hamilton Island, with a smaller number employed at corporate headquarters in Sydney.

“Some common roles of underpaid workers included food and beverage supervisors, assistant restaurant managers, chefs, front office employees, clerical employees, housekeeping employees, handymen and concierges.”

Ms Booth said to date, $28.1 million had been back-paid, including more than $6 million in interest and about $500,000 in superannuation, to 2152 current and former staff who were underpaid between December 2014 and December 2022, with a further $260,000 owed to 32 employees not yet found.

She said investigation into the wages and entitlements of salaried staff began in 2020, following requests for assistance.

“The EU requires the companies to quantify and rectify staff underpayments since December 2014 by 30 June of this year.”

Former employees can use the search function on the FWO’s website to check if amounts are owed to them.