The Bank of Queensland has failed to pay several workers their superannuation benefits, in a failure that could potentially blow out to $11 million in back payments.
The bank has already accounted for $2.4 million of superannuation owed to employees that has been forwarded to the Australian Taxation Office.
BOQ told the ASX that it made an additional $8.6 million provision as the matter is still under investigation and "further work to be done to determine the full impact."
BOQ uncovered irregularities after an internal review of its superannuation payment process. It identified other potential issues that affect workers covered under an enterprise agreement. Employees covered under the 2010, 2014 and 2018 enterprise agreements are potentially impacted.
|Sponsored by BlackRock|
Looking to build resilience into your portfolio?
BOQ said it will ensure employees are "remediated fully as a matter of priority as it completes a broader external wage analysis and review for enterprise agreement employees."
It has advised the Fair Work Ombudsman and the Financial Services Union of the errors, and engaged external third parties to assist with the analysis and remediation process.
The FSU raised concerns with the bank about unpaid superannuation 18 months ago. While that issue was resolved, the bank failed to follow through and properly audit its payroll at the time.
FSU national secretary Julia Angrisano said 750 workers have been under paid as BOQ failed to pay workers their correct base rates, overtime, penalty rates and full superannuation entitlements.
"We have been urging all the banks to review and audit their payrolls and we are not surprised that another bank has been underpaying workers," Angrisano said.
The bank's chief executive George Frazis said: "We will get this right and we will make sure our people, past and present receive every cent they are owed. This is an absolute priority."
The bank also announced that its revised collective provision for FY20 includes a loan impairment expense of $175 million (pre-tax), of which $133 million is COVID-19 related.
BOQ continues to see reductions in customers accessing financial assistance through the banking relief package, Frazis said. As at 31 August 2020, BOQ had 12% of housing customers on the banking relief package and 16% of SME customers.