Criminal charges and financial penalties have been filed against the National Australia Bank for failing to pay long service leave entitlements to casual employees, in alleged violation of Victorian state laws that force private companies to pay full entitlements to non-permanent staff.

According to the media reports, the Victorian government’s Wage Inspectorate filed criminal charges against NAB in the Magistrates Court on October 8 and will argue the bank systematically broke the law by failing to pay former staff members on casual contracts long service leave entitlements.

The Wage Inspectorate was set up in June to enforce state laws covering wage theft, child employment, long service leave and independent contractors. In July, retail giant Coles was fined $50,000 after an investigation by the independent body found more than 4000 Victorian employees were collectively underpaid $700,000 in long service leave.

The total outstanding long service leave entitlements in NAB’s case is estimated to be about $30,000.

If the lawsuit is successful, it would set a precedent for private companies to ensure all enterprise bargaining agreements align with Victorian state laws to pay entitlements to casuals and other non-permanent staff.

Victoria’s Long Service Leave Act of 2018 states all employees who have worked continuously with one employer for at least seven years are entitled to long service leave entitlements. This applies to work that is a full-time, part-time, casual, seasonal and fixed term.

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