IBM Australia underpaid 1,647 employees over eight years, resulting in $12.3 million in lost wages, an internal audit finds. Australia’s Fair Work Ombudsman, Sandra Parker, says the full scope of the issue will be “significant in size,” The Sydney Morning Herald reports.
“This matter serves as a warning to all employers that if you don’t prioritize workplace compliance, you risk underpaying staff on a large scale,” Parker says.
Last year, IBM Australia’s internal audit discovered the issue, which was then reported to the ombudsman. The company will have to make a “contrition payment” to the Australian government of 5.25 percent of the total value of the underpayments.
In one IBM call center, staff members were paid the national minimum wage; Australian wage law says call center employees must be paid approximately 8 percent more than the minimum. Other underpaid employees include company managers who were not reimbursed for using personal vehicles for business purposes, among other unpaid allowances. 
Elizabeth Mullen is an editorial consultant for Internal Audit 360°.