Lush Cosmetics Australia employees due backpay after payroll system error

Lush Cosmetics Australia has reportedly agreed to provide a back payment to its employees after admitting it had underpaid staff since 2010 due to a payroll system error.

The error was uncovered following an internal investigation. The company is expected to pay out a total of $2m to more than 5,000 retail and manufacturing workers across Australia under a national backpay scheme, reported ABC News.

Part-time employees that worked overtime are reported to be the worst affected.

Lush Cosmetics Australia director Peta Granger was quoted by The Sydney Morning Herald as saying: “Whether it’s $1 or $1,000, we are committed to connecting with every employee who’s been affected by our mistake.

“We are deeply sorry to our valued staff and customers that we’ve failed to uphold the values that we have always believed in and the high standards that we’ve always sought to achieve.

“We would never knowingly underpay. This was not deliberate. It goes against everything we value and believe in.

“We are doing everything in our power to pay the money we owe as quickly and as transparently as possible. We know we’re far from perfect, but we always strive to do the right thing.”

The company intends to invest $1.5m to upgrade and improve its payroll system, reported media sources.

Granger added: “This is a complex process, and realistically it will take the rest of this year to get it right.

“We are confident, however, that back payments including interest will begin to be paid by December.”