Article: Tech firm under fire over alleged refusal to pay staff

Compensation & Benefits

Tech firm under fire over alleged refusal to pay staff

An employer is being criticised by several workers for not paying their final wages. The issue came to light after a senior employee sent out a scathing company-wide email before quitting the firm.
Tech firm under fire over alleged refusal to pay staff

An Australian technology firm has come under fire after a former employee blew the whistle on its refusal to pay staff.

Sydney-based IT company D365 Group is being criticised by several workers for not paying their final wages, leave entitlements, or superannuation. The issue came to light after a senior employee sent out a scathing company-wide email before quitting the firm.

In an exclusive report, News.com.au spoke to former D365 Group staff about their experience working with the company. Seven of the workers accused the tech firm of not paying their superannuation, which costs between $7,000 and $45,000. It also failed to pay their accrued leave and final wages for the final weeks that they worked.

The backlash from the pay controversy has caused many other employees to quit. Before the revelation, D365 Group had about 30 full-time and part-time workers. However, over the past year, the company lost as many as 18 members of its staff.

Read more: Are wage hikes driving inflation in Australia?

Stiff-arming ex-employees

James Turnbull, a former Chief Technology Officer at D365 Group, left the company in December, describing the situation in which one “could see the wheels were falling off” the company.

“Whenever somebody left, they would get stiffed, they wouldn’t get their final several weeks’ pay,” Turnbull told News.com.au.

“The trick which was well known in the organisation was to leave right after a payday to minimise the amount you could get stiffed, which is ridiculous. I left right after payday.”

Read more: How employers can support workers amid inflation

Turnbull claimed he has yet to receive his $20,000 back pay eight months after leaving D365 Group. He said the figure is from all the unpaid super, a week’s worth of wages, and 240 hours of accrued leave. 

In an effort to address the issue of wage theft across Australia, the Fair Work Ombudsman and the Australian Taxation Office (ATO) are now looking into the former D365 Group workers’ accusations.

The government agencies have reportedly instructed the tech firm to pay employees appropriately. However, the D365 Group has yet to respond to the FWO and ATO’s order.

Read full story

Topics: Compensation & Benefits

Did you find this story helpful?

Author

QUICK POLL

What are the top work tech investment focus areas for your company currently?

How are you helping to build the future of work?

READ our latest issue for perspectives on the many facets that form tomorrow's workplace.