Struggling retailer Dick Smith went into voluntary administration last month, after a holiday period filled with firesales and extreme discounting. But new information reveals that Dick Smith owes a large number of employees a significant dollar figure in underpaid annual leave.
This underpayment apparently goes back as far as 2010.
As Business Insider Australia reports, Dick Smith’s receiver Ferrier Hodgson has announced a major structural overhaul and, as part of ongoing investigations, discovered the underpayment issue.
“Based on our investigations to date,”explained James Stewart of Ferrier Hodgson, “we understand that up to 3,200 current and former employees of the Australian business may have been underpaid their annual leave loading entitlements, potentially dating back to 2010.”
The figure is thought to amount to $2 million in unpaid wages.
As part of a restructure, Dick Smith is set to make 22 support roles redundant. Its current CFO Michael Potts is also being made redundant.
Business Insider has more details.
3200 Dick Smith employees have been underpaid [Dick Smith]