MotorCycle Holdings Ltd Identifies Employee Underpayments
Key points
- Identified issues with Modern Awards application
- Underpayment of leave loading for employees
- Remediation cost estimated between $1.1m - 1.3m
- Voluntary disclosure to Fair Work Ombudsman
Full summary
MotorCycle Holdings Ltd (ASX:MTO) has identified issues with the application of Modern Awards for its employees, leading to underpayment of leave loading. The Company has taken immediate steps to amend its payroll system to align with the Modern Award requirements. The estimated remediation cost for unpaid leave loading for the period 1 July 2020 to 30 June 2026 is between $1.1m - 1.3m (pre-tax). MTO is making a voluntary disclosure to the Fair Work Ombudsman and will engage with employees and the Ombudsman on the review. The Company will keep the market updated of any material developments in this matter.
Guidance
Remediation cost for unpaid leave loading is estimated between $1.1m - 1.3m (pre-tax) for FY26
Outlook
MotorCycle Holdings Ltd is committed to resolving the identified issues and will keep the market updated on any material developments.
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