Southeast Queensland's water supplier will back-pay staff more than $7 million after an investigation by the Fair Work Ombudsman found hundreds of its employees were underpaid over many years.
Seqwater has entered into an enforceable undertaking with the ombudsman.
They are required to pay back their employees by February 2023.
The ombusdman's investigations began in 2020 following underpayment allegations raised in the media for workers across southeast Queensland locations.
These include Capalaba, Molendinar, Wyaralong, Ipswich, Mt Crosby, Kilcoy, Banksia Beach, Caboolture and Noosa.
Some employees were underpaid because Seqwater incorrectly determined they were not required to provide entitlements outlined in the enterprise agreement because they were on individual contracts.
Issues with payroll system errors also caused underpayments, the ombudsman said.
While most underpayments pertained to overtime pay, other entitlements like travel, on-call, call-back allowances, leave loading, ordinary hourly rates and remote assistance allowance were underpaid.
The ombudsman said Seqwater also breached record-keeping and pay-slip laws.
Work is ongoing by the regulator to ensure accurate calculations for underpayments owed to workers is administered.
Some 790 current and former employees between 2016 and 2022 have been paid back $7.75 million to date, which includes superannuation and interest.
Further underpayments are still being assessed under the enforceable undertaking.
Individual back-payments have ranged from less than $1 to more than $380,000.
Ombudsman Sandra Parker said the enforceable undertaking was sufficient due to Seqwater's compliance with rectifying underpayments.
"Under the enforceable undertaking, Seqwater has committed to implementing stringent measures to ensure workers are being paid correctly," she said.
"These measures include engaging, at the organisation's own cost, audits of its compliance with workplace laws over the next two years."
In light of the investigation, Seqwater is required to engage in an independent expert review to be provided to the ombudsman, publish media, social and workplace notices of their breaches and apologise to workers and unions.
In addition, the organisation requires a hotline for employees to enquire about their wages and entitlements for 12 months and show evidence they have developed processes for ensuring future compliance.
Seqwater must also contribute a $545,000 contrition payment to the Commonwealth's Consolidated Revenue Fund.
