Michael Hill underpays staff up to $25 million

11 Juillet, 2019, 18:36 | Auteur: Auguste Feret
  • Michael Hill

Michael Hill International said an initial review of its Australian retail employment contracts and rostering practices showed non-compliance with some industry requirements over the past six financial years and may cost the jewellery chain up to A$25 million to remedy.

The Brisbane-based jewellery retailer says a review by PriceWaterhouseCoopers found the general retail industry award had been misapplied.

The Company has now started a more detailed review of all employee records, rostering practices and payments.

But given the "volume of data to work with and the complexity of the issues", the review is expected to take another several months.

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Michael Hill closed eight under-performing Australian and opened four new ones.

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"I will be in contact with all team members today to apologise on behalf of the company and to provide an outline of the process we are following to establish who is impacted", Bracken said.

"I'm committed to engaging with our team members transparently and with absolute integrity and fairness", Mr Bracken said.

In New Zealand, the retailer saw a decrease in same-store sales of 4.7 per cent to NZ$115.2 million, down from NZ$120.9 million, with two stores closing and two opening over the period.

Gross margin fell to 61.1 percent in the year ended June 30, from 62.8 percent for the prior year, the company said.

Michael Hill announced its underpayment finding the same day it revealed a 3.5 per cent fall in total same-store sales to $523.9 million across all markets for FY19.

Michael Hill said it was increasingly focused on uniquely differentiated products, such as its new branded bridal collections.

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