Join our daily newsletter At The Bell to receive exclusive market insights
- APA Group (APA) identifies payment errors to employees, following an independent review of its of its payroll
- System errors were identified relating to seven enterprise agreements, with APA commencing the process to remediate the errors for affected employees
- As a result, a provision of $32 million will be added in its financial statements for FY22
- This includes the errors made over a seven-year period, as well as superannuation and interest payments to employee entitlements
- Shares are trading 1.6 per cent lower today at $11.65 each at 2:14 pm AEST
APA Group (APA) has identified payment errors to employees, following an independent review of its payroll.
System errors were identified relating to seven enterprise agreements and APA has commenced the process to remediate the errors for affected employees.
As a result, a provision of $32 million will be added in its financial statements for FY22.
This includes the errors made over a seven-year period, as well as superannuation and interest payments to employee entitlements.
APA said the errors arose due to an incorrect interpretation of the complex enterprise agreements and other system, process and administration issues.
It has disclosed the error to the Fair Work Ombudsman and will collaborate with the organisation to finalise the amount to be remediated.
CEO and Managing Director Rob Wheals said the company will make necessary investments to strengthen its systems and processes.
“We have begun a detailed analysis of payroll data and records covering the seven-year period and seven enterprise agreements, and have engaged expert consultants to support this review,” he said.
“We anticipate this will take approximately 12 months. We will be communicating with current and former employees through this period and will update the market on any material developments.”
Shares were trading 1.6 per cent lower today at $11.65 each at 2:14 pm AEST.
