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LUSH issue shows businesses must be alert and proactive on staff entitlements

July 17, 2018

The National Retail Association has today warned all businesses large and small of the need to be alert and proactive when dealing with their employees’ pay and entitlements, in the wake of the LUSH Cosmetics Australia issue.

NRA Chief Executive Officer Dominique Lamb commended LUSH for the way they had responded after discovering long-standing compliance issues within their payroll systems.

“While the compliance issues are clearly regrettable, LUSH’s response has been a textbook example of how a business should recognise its mistakes, take ownership of them and fix them,” Ms Lamb said.

“We commend them on their openness, and their determination to do everything in their power to set things right.

“And we would certainly hope that the relevant authorities will recognise that LUSH has taken a very transparent and honest approach to addressing the issue, and not tried to sweep it under the carpet.  This is what we should expect of businesses that make these kinds of mistakes.”

Ms Lamb said the issues confronting LUSH could easily happen to any Australian business, and she warned business owners to ensure they were complying with their responsibilities.

She said the Modern Award system was complicated and often difficult to navigate, and urged business owners to seek support and advice from an industry body such as the National Retail Association.

“We are calling on all businesses around Australia to perform a thorough check of your own payroll systems to make sure you are meeting your responsibilities.

“If you are unsure or concerned, get in touch with the NRA and get the right advice on the best ways to move forward and fix the issue.

“The system is in place to protect employees, but it doesn’t have to be a nightmare for employers – as long as you get the right advice from people who can help you navigate it.”

The National Retail Association is Australia’s largest and most representative retail industry association.  It has been serving businesses in the retail and fast food sectors for close to 100 years.

Dominique Lamb is available for interviews.  Contact the NRA’s media unit on (07) 3240 0163 or 0467 792 013.

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