MotorCycle Holdings (ASX:MTO) identified potential underpayments linked to the application of modern awards, primarily involving unpaid leave loading for employees whose remuneration exceeds award requirements, according to a Friday Australian bourse filing.
The company has updated its payroll systems to comply with award requirements and estimates pre-tax remediation costs of AU$1.1 million to AU$1.3 million for current employees for the period from July 1, 2020, to June 30, with around AU$400,000 expected to be recognized in fiscal 2026, the filing said.
The company is conducting a review of potential amounts owed to former employees and any historical award misapplications, and has made a voluntary disclosure to the Fair Work Ombudsman while working with employees and regulators to resolve the matter, the filing added.