REG - BHP Group Limited - Review of Employee Allowances and Entitlements

BHPAnnouncement

01/06/2023 07:00

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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                    Investor Relations

 Email: media.relations@bhp.com     Email: investor.relations@bhp.com

 Australia and Asia                 Australia and Asia

 Gabrielle Notley                   John-Paul Santamaria

 Tel: +61 3 9609 3830               Mobile: +61 499 006 018

 Mobile: +61 411 071 715

                                    Europe, Middle East and Africa

 Europe, Middle East and Africa     James Bell

 Neil Burrows                       Tel: +44 2078 027

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 Mobile: +44 7786 661 683

                                    Americas

 Americas                           Monica Nettleton

 Renata Fernandez                   Mobile: +1 (416) 518-6293

 Tel: +56 9 8229 5357

 

 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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