Slater & Gordon, a firm synonymous with workers' rights, has endured a turbulent year marked by underpayments, wrongful dismissal claims, privacy breaches and serious payroll integrity failures. Central to the controversy is the revelation that a former payroll officer, Bridgett Maddox - a convicted serial fraudster - had access to sensitive data later leaked in an anonymous, damaging internal email.
This case underscores the catastrophic consequences of weak payroll governance. The firm is now facing legal battles with two former HR leaders, both alleging wrongful dismissal after raising legitimate payroll and compliance concerns. The breaches involved not only alleged systemic underpayments, but a failure to detect unauthorised access and mishandling of sensitive employee data, potentially leaving the organisation open to class action.
From a payroll best practice standpoint, this highlights several critical issues:
Inadequate vetting: Hiring payroll staff without proper background checks is a clear risk. As Tracy Angwin writes in Profit from Payroll, robust onboarding and qualifications are fundamental to trust in payroll functions.
Lack of process clarity: Poor documentation and ambiguous responsibilities increase fraud risk. Each payroll role must have defined duties and audit trails to protect both data and people.
Failure to proactively measure and monitor: Organisations must benchmark and regularly review payroll compliance, cost, and system integrity.
Poor cybersecurity hygiene: The inability to determine whether confidential information was downloaded after Maddox's suspension is a stark warning. Secure access management and prompt deactivation of credentials are essential controls.
Above all, this scandal reinforces that payroll is not a passive back office function. It is a critical financial operation, tied directly to employee trust, corporate reputation, and legal compliance. Investing in qualifications, fraud prevention, and audit-ready processes is not optional - it's essential.
Let Slater & Gordon's year from hell be a call to action: review your payroll practices, ask the tough questions, and ensure your team is qualified, monitored and respected. Because when payroll goes wrong, the consequences aren't just financial - they're organisational.
