A major service station chain has committed to restitution after a Fair Work Ombudsman inquiry.

The Fair Work Ombudsman (FWO) has revealed that the service station giant OTR, also known as On The Run, failed to properly categorise 1,500 workers as shift workers, resulting in $2.3 million in unpaid annual leave entitlements. 

This conclusion came after a comprehensive investigation prompted by numerous employee inquiries regarding their employment status and entitlements.

During the inquiry, 15 OTR locations across South Australia, Victoria, and Western Australia were inspected, revealing that these employees were entitled to five weeks of annual leave per year, rather than the standard four, due to their shift worker status.

“We got a lot of inquiries to our info line about the categorising of employment, [with] workers believing they were shift workers and they should be receiving annual leave as such,” said Fair Work Ombudsman Anna Booth. 

“We investigated and found that they were correct … and we brought this to the attention of the employer.”

In response, OTR conducted its own review and acknowledged the oversight. 

The company has agreed to an enforceable undertaking with the FWO, promising to repay 934 former employees a total of $975,000, which includes $48,415 in interest. 

Additionally, approximately 6,000 days of annual leave, worth about $1.3 million, will be credited to 590 current employees.

Ms Booth noted that OTR has agreed to pay a $150,000 contrition payment to the federal government's consolidated revenue fund.

The affected employees predominantly worked in service stations and other OTR businesses located in key regions including Adelaide, Bordertown, Ceduna, Port Lincoln, Port Augusta, and Murray Bridge, with smaller numbers in Perth, Horsham, Mildura, Ararat, and Traralgon.

“The positive out of it, and why we've entered into an enforceable undertaking with On The Run, is that they have fully cooperated with us,” Ms Booth said. 

She expressed hope that the new owners, Viva Energy, will continue to uphold the agreement and ensure such errors are not repeated.

Josh Cullinan, secretary of the Retail and Fast Food Workers Union, called the outcome significant but urged the FWO to extend their investigations across the service station industry, citing long-standing issues beyond just shift work and annual leave discrepancies.