7-Eleven compensation claims hit $110m


By Lucy Marrett 

The 7-Eleven wage repayment scheme has so far repaid over $110 million in unpaid wages.

However former wage repayment chairman Professor Allan Fels has raised concerns about minimal fines.

The current payout has eclipsed penalties under existing laws and raised questions about a new law that the Federal Government has proposed, Sydney Morning Herald reported.

Mr Fels said the fines imposed under the existing laws would be minimal in comparison to the 7-Eleven payouts.

“The far stronger deterrent effect for others is if they know they have to make up the underpayments in full – in this case $110 million plus, compared to if they just have to pay a fine,” he said.

“The Fair Work Act system just imposes fines and very limited compensation on the individuals whose cases are considered. But the court system works quite badly for systematic underpayment of thousands of people.”

Read more here.

This story first appeared in C&I Week. 

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