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IT giant IBM has backpaid about 1650 workers more than $12.3 million after it failed to provide award entitlements to workers covered by the business equipment, professionals, banking, finance & insurance, and nursing awards.

IBM failed to provide employees with more than 15 different award entitlements and conditions, with the most significant issues relating to vehicle allowances, superannuation entitlements and annual leave loading.

It continued that the company paid the national minimum wage to “a significant number” of casuals at its Ballarat contact centre, rather than the higher rates and entitlements under the applicable award.

It also faces a “contrition payment” of at least $676,000 under an enforceable undertaking with the Fair Work Ombudsman.

The Fair Work Ombudsman said in a statement that the company is yet to quantify further “significant” underpayments that it will be required to rectify by October 16.

It will make a contrition payment of 5.5% of the underpayments, the same formula applied to other similar offenders such as the ABC, Woolworths and Qantas.