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Lush admits to underpaying staff by $2m due to ‘outdated system’

Article image for Lush admits to underpaying staff by $2m due to ‘outdated system’

200,000 handwritten time sheets will be scanned to pay back underpaid LUSH Australia workers after a system error.

More than 5,000 current and former staff are owed around $2 million in underpaid wages.

The company first learned of the mistake in August last year, prompting an internal investigation, and blames an “outdated manual payroll system” for not keeping up with growth.

Payments are expected to begin in December.

LUSH People Support Manager Amy Lynes tells Ross Greenwood the system was “not sophisticated enough”.

She says “it will take some time” to ensure the repayments are distributed correctly.

“Our primary purpose about coming forward today was to make sure we can be really clear about what’s happened with our staff and wanted to make sure we could apologise to our staff.”

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