Hamilton Island Operators Sign Enforceable Undertaking

The operators of Hamilton Island in Queensland have back-paid staff over $28.1 million and entered into an Enforceable Undertaking (EU) with the Fair Work Ombudsman (FWO) to ensure future compliance with workplace laws.

Hamilton Island Enterprises Limited (HIE) runs a variety of businesses on the island, including accommodation, retail stores, restaurants, leisure facilities, a marina, and an airport. Its subsidiary, Hamilton Island Shared Services Pty Ltd (HISS), provides financial, sales, and marketing support.

What Happened?

In 2020, the Fair Work Ombudsman launched an investigation into wages and entitlements after receiving requests for assistance. The inquiry found that many salaried employees were underpaid because their annual salaries didn’t properly cover their Award entitlements, particularly for overtime, shift work, penalty rates, and allowances.

Roles impacted included:

• Food & Beverage Supervisors
• Assistant Restaurant Managers
• Chefs
• Front Office & Clerical Employees
• Housekeeping Staff
• Handymen & Concierges

The Scale of Underpayments

Between December 2014 and December 2022, 2,152 current and former employees were underpaid. The operators have since back-paid a total of $28.1 million, which includes:
✅ $6 million in interest
✅ $500,000 in superannuation

Additional funds of $250,984 (plus $10,954 in superannuation) remain unclaimed for 32 employees yet to be located.

Back-payments ranged from less than $5 to $119,446, with an average payout of around $8,000.

What Happens Next?

Under the Enforceable Undertaking, the companies must:
✔ Finalise all back-payments by 30 June
✔ Make a $750,000 contrition payment – $500,000 to the Commonwealth Consolidated Revenue Fund and $250,000 to the not-for-profit Cleaning Accountability Framework
✔ Conduct an independent audit of wage payments, reporting findings to HIE’s Board and the FWO
✔ Hire a Compliance Officer to ensure ongoing adherence to workplace laws
✔ Run an employee hotline and email support for workplace-related queries
✔ Implement employee feedback mechanisms, including quarterly engagement sessions

Fair Work Ombudsman’s Statement

Fair Work Ombudsman Anna Booth said the companies had cooperated fully and shown a strong commitment to rectifying the issue.

“Under the Enforceable Undertaking, the companies have committed to rectifying all underpayments in full—plus interest and superannuation—and putting in place stringent measures to ensure all staff are paid correctly in future.”

Ms Booth also stressed that underpayments due to fixed annual salaries are a growing issue across many industries.

“Businesses paying annual salaries cannot take a ‘set-and-forget’ approach. Employers must ensure wages actually cover all minimum lawful entitlements for the hours their employees work.”

This case serves as a reminder to businesses that compliance isn’t optional—and getting it wrong can come at a hefty cost.