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The fashion company with more than 1,100 stores across Australia pleaded guilty to 324 offences of long service leave underpayments.
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NSW government secures record fine against specialty retailer
31 May 2023
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The NSW government has secured a record fine for underpaying long service leave against the largest specialty fashion retail group in Australia.
Mosaic Brands Limited and two of its subsidiaries, Noni B Holdings Pty Limited and Pretty Girl Fashion Group Pty Ltd, pled guilty to 324 long service leave underpayment offences.
This was the largest number of offences prosecuted simultaneously in NSW for long service leave underpayments.
The NSW Employee Relations Inspectorate uncovered that the systematic underpayments to 223 workers arose from a payroll system error at Mosaic Brands and its subsidiaries.
With 1100 stores across Australia, the nation’s largest specialty fashion retailer group had a $29,000 fine imposed upon it.
The company also entered into a deed that committed the fashion giant to pay for an independent third party to conduct a full audit of their compliance with long service leave legislation.
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The magistrate at the Downing Centre Local Criminal Court concluded that although the underpayments were not deliberate, the offences were too serious and too widespread for no penalty to be issued.
Minister for industrial relations Sophie Cotsis said the action was only the beginning as the government looked to continue the crackdown on employers exploiting their workers, particularly as the Minns government aimed to expand long service leave through a portable leave scheme for gig economy workers.
“The NSW government is committed to standing up for workers and investigating businesses who are short-changing their staff, particularly at a time when so many individuals and families are doing it tough,” said Ms Cotsis.
“The criminal court’s ruling is a reminder to employers, big and small, that they should be making sure their employees are receiving their full entitlements.”
“Long service leave applies to most NSW employees who are full-time, part-time or casual. It is up to the employer to conduct their own internal compliance reviews on a regular basis to make sure they are paying long service leave correctly.”
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