Company Announcements

Review of Employee Allowances and Entitlements

Source: RNS
RNS Number : 2614B
BHP Group Limited
01 June 2023
 

NEWS RELEASE      

Release Time

IMMEDIATE

Date

1 June 2023

Release Number

11/23

 

REVIEW OF EMPLOYEE ALLOWANCES AND ENTITLEMENTS

 

BHP has identified issues with certain allowances and entitlements affecting a number of its current and former employees in Australia.

 

A preliminary review suggests that certain rostered employees across our Australian operations have had leave incorrectly deducted on public holidays since 2010. There are approximately 28,500 affected current and former employees with an average of 6 leave days in total that have been incorrectly deducted from affected employees over this 13 year period.

 

Initial investigations also suggest that OZ Minerals has been affected by a similar leave deduction issue before being acquired by BHP in May 2023.

 

In addition, BHP has identified that approximately 400 current and former employees at Port Hedland are entitled to additional allowances due to an error with the employment entity in their contract.

 

Based on currently available information, it is estimated that the cost of remediating the leave issue and the contracting issue will be up to US$280 million pre tax, incorporating on costs including associated superannuation and interest payments (BHP share). BHP is continuing to investigate and an update will be provided in our full year results in August.

 

Geraldine Slattery, President Australia said: "We are sorry to all current and former employees impacted by these errors. This is not good enough and falls short of the standards we expect at BHP. We are working to rectify and remediate these issues, with interest, as quickly as possible."

 

Protiviti, a global assurance firm, has been engaged to conduct a thorough review of our payroll systems.

 

BHP will contact affected current and former employees regarding remediation as soon as possible and a dedicated hotline and website will be established to provide assistance from Friday.

 

BHP has self-reported to the Fair Work Ombudsman.

 

 

 

 

 

Authorised for lodgement by:

Stefanie Wilkinson

Group Company Secretary

 

 

Media Relations

Email: media.relations@bhp.com

 

Australia and Asia

Gabrielle Notley

Tel: +61 3 9609 3830

Mobile: +61 411 071 715

 

Europe, Middle East and Africa

Neil Burrows

Tel: +44 20 7802 7484

Mobile: +44 7786 661 683

 

Americas

Renata Fernandez

Tel: +56 9 8229 5357


Investor Relations

Email: investor.relations@bhp.com

 

Australia and Asia

John-Paul Santamaria

Mobile: +61 499 006 018

 

Europe, Middle East and Africa

James Bell

Tel: +44 2078 027

144 Mobile: +44 7961 636 432

 

Americas

Monica Nettleton

Mobile: +1 (416) 518-6293

 

BHP Group Limited ABN 49 004 028 077

LEI WZE1WSENV6JSZFK0JC28

Registered in Australia

Registered Office: Level 18, 171 Collins Street

Melbourne Victoria 3000 Australia

Tel +61 1300 55 4757 Fax +61 3 9609 3015

 

BHP Group is headquartered in Australia



 

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