Urban Utilities has admitted to a $21.3 million worker underpayment.

Urban Utilities, a major water distributor in Australia, has acknowledged a significant payroll error that resulted in underpaying its employees by $21.3 million over a period of seven years. 

The company, responsible for supplying drinking water, recycled water, and sewerage services to over 1.6 million individuals in south-east Queensland, made this revelation during a review of historical payroll matters.

Paul Arnold, the CEO of Urban Utilities, stated that the underpayment of 1,525 current and former workers was both “incorrect” and “unintentional”. 

He added that the total amount owed to these individuals, including superannuation and interest, spans from July 1, 2015, to June 30, 2023.

The issue came to light in August 2022 when the council-owned water distributor notified its employees of an ongoing investigation into the underpayments. 

Arnold explained that the problem arose from the intricate interpretation of Enterprise Agreements, awards, employment contracts, and their application in rostering and timekeeping processes.

To rectify the situation, the company has already paid affected employees the owed amount, including interest, and has initiated the process of compensating former employees who were affected by the error.

Arnold expressed his regrets, saying; “We're very sorry this has happened”.

To ensure transparency, Urban Utilities has sought the assistance of an independent firm to analyse historical data and calculate discrepancies in payment versus entitlements.

In addition to addressing the issue internally, Urban Utilities has reported the matter to the Fair Work Ombudsman and is reportedly keeping relevant unions informed through regular updates.