3200 Dick Smith staff may have been underpaid

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3200 Dick Smith staff may have been underpaid
Dick Smith CFO Michael Potts

Dick Smith's receivers have revealed that up to 3200 staff could have gone underpaid for six years.

The underpayments are estimated at approximately $2 million in annual leave payments.

Ferrier Hodgson reciever James Stewart said the underpayment was the result of an incorrect application of the relevant industrial reward.

“Based on our investigation to date, we understand that up to 3200 current and former employees of the Australian business may have been underpaid for their annual leave loading entitlements, potentially dating back to 2010,” said Stewart.

In addition to that revelation, Dick Smith announced a further 22 staff terminations in an ongoing attempt to restructure the business.

The latest round of redundancies comes from Dick Smith’s support office in western Sydney. Among the job cuts includes chief financial officer Michael Potts, who departs after three years with the company.

Potts will be replaced by former Woolworths chief financial officer Bert Van Der Velde.

This is the second round of post-receivership job cuts at Dick Smith, following the termination of 181 staff from Electronics Powered by Dick Smith stores, a joint venture with David Jones.

Dick Smith was placed in voluntary administration and receivership on 5 January owing $390 million in debt. Dick Smith chief executive officer Nick Abboud resigned on 12 January, and was replaced by interim chief executive Don Grover.

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