Jewellery retailer Michael Hill has revealed it will spend up to $25 million repaying its workers, after a review of employment contracts and rostering practices found a "historic misapplication" of the Award across six years.
Michael Hill doesn't expect the remediation to hit its earnings of the company, however.
New company chief executive Daniel Bracken said the company would contact all staff on Thursday to apologise and outline a process to quickly pay those affected.
The global jewellery chain said the remediation would be "one-off cost" that is somewhere between $10 million and $25 million.
A more comprehensive review has been undertaken to look at all employee records, rostering practices and payments.
In a separate trading update, Michael Hill posted a 0.1 percent gain in June-quarter sales from continuing operations.
The company did experience "margin compression" as it cut prices to remain competitive, with its full-year profit margin at 61.1 per cent compared with 62.8 per cent for the previous year.
Michael Hill announced its underpayment finding the same day it revealed a 3.5 per cent fall in total same-store sales to $523.9 million across all markets for FY19.
The group said it opened 10 new stores while it closed 11 "underperforming" stores along with five Emma & Roe stores during the year.
At 1111 AEST, Michael Hill shares were down three cents, or 5.26 per cent, to 54 cents.
In Australia, where it had 168 stores, total quarterly sales fell to A$71.9 million, down nearly 6 percent from a year earlier.
The company will announce its full-year results on August 16 and also provide an update on the progress of the strategic initiatives and the customer-led retail operating model.