Home / Knowledge / News / Apparel/Garments / Cotton On back-pays $278,000 to 3289 underpaid employees
Cotton On back-pays $278,000 to 3289 underpaid employees
Jul '10
Geelong-based retail giant Cotton On has back-paid 3289 of its employees more than $278,000 after it was discovered the company had failed to pay staff for attending training out of working hours.

The back-pay – an average of $84.56 per employee – follows an investigation by the Fair Work Ombudsman which found that Cotton On contravened workplace laws when it failed to pay staff attending training sessions and staff meetings between February and December, 2008.

Cotton On voluntarily repaid all money owing last year and has entered into an Enforceable Undertaking with the Fair Work Ombudsman, promising that it will ensure future compliance with the Fair Work Act.

As part of the Enforceable Undertaking – a measure being used by the Fair Work Ombudsman as an alternative to litigation - Cotton on must:

• Post an apology to staff (signed by the Chief Executive Officer) at all its stores, on its website and on the company's Facebook wall,
• Ensure its human resources managers undertake workplace relations compliance training within three months,
• Provide a written report to the Fair Work Ombudsman each year for the next three years to illustrate that staff are being paid correctly and identifying any proactive compliance measures.

As part of the agreement, Cotton On acknowledges that there was sufficient evidence and public interest to justify the Fair Work Ombudsman initiating legal action against the company.

In its apology to staff, Cotton On “expresses its sincere regret and apologises to all past and present employees for failing to comply with its lawful obligations” and gives a commitment that such conduct “will not occur again”.

Fair Work Ombudsman Executive Director Michael Campbell says Enforceable Undertakings are a mechanism by which the Agency can still achieve strong outcomes against wrong-doers without costly civil penalty proceedings.

Fair Work Ombudsman

Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search