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· Posted on
February 21, 2024

Mecca has admitted to underpaying staff and no amount of concealer can cover up this scandal

Mecca discovered that they've got a total of $560,000 unpaid wages that are owed to their staff.

What's the key learning?

  • Mecca found out it's got unpaid wages that are owed to a percentage of its staff and that it has been employing its staff under long-expired agreements... aka zombie agreements.
  • A zombie-agreement is an agreement between an employer and its employees that was created before the 2009 Fair Work Act was legislated.
  • If you're in a zombie-agreement, it doesn’t necessarily mean you’re being underpaid but it doesn’t always take into account things like overtime rates and allowances.

👉 Background: Mecca is Australia’s largest cosmetic retailer by sales, with over 100 stores across Australia and New Zealand. Mecca sells some of the top brands in cosmetics like Clinique, L’Oreal, Too-Faced, and many more.

👉 What happened: Last week, Mecca found out that they’ve got a total of $560,000 unpaid wages that are owed to 17.5% of their staff. So now, Mecca’s in repair mode, and they’ve promised to repay all the affected employees with interest by April 19th.

👉 What else: It also came out that Mecca has been employing its staff under long-expired agreements... aka zombie agreements which go as far back as 2005 - back when trucker hats were all the rage.

What's the key learning?

💡A zombie-agreement is an agreement between an employer and its employees that was created before the 2009 Fair Work Act was legislated. A lot of these zombie agreements are controversial.

💡Pre 2009, conditions weren’t as favourable to employees compared to modern awards, which include things like minimum wage and leave entitlements.

💡If you're in a zombie-agreement, it doesn’t necessarily mean you’re being underpaid but it doesn’t always take into account things like overtime rates and allowances.

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