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Commonwealth Bank accused of not paying long service leave to 20 former employees

A spokesperson for Commonwealth Bank says the affected former staff have now been properly paid. (ABC News: Margaret Burin)

Commonwealth Bank has been accused of failing to pay more than $70,000 worth of long service leave payments to 20 former employees.

Victoria's wage inspectorate filed 23 charges against Commonwealth Bank entities BankWest and CommSec for the underpayment, as well as for failing to produce documentation for its investigation.

A spokesperson for the Commonwealth Bank said the underpayment of staff was "unacceptable".

"CBA Group acknowledges that any instance of employees not being paid their correct long service leave entitlements is unacceptable," they said.

"We have cooperated fully with the Wage Inspectorate Victoria's investigation and will review the charges filed.

"The former employees included in these proceedings have been fully remediated."

Victoria's Long Service Leave Act states employees who have worked continuously for seven years or more at a single company are entitled to take long service leave or be paid out for unused leave at the end of their employment.

This applies to permanent, casual, seasonal and fixed-term workers, as long as their employment is continuous.

The matter is listed for mention in the Melbourne Magistrates' Court on October 10 this year.

The charges follow claims that Commonwealth Bank has been underpaying staff and misrepresenting it's workers rights.

In January, the Financial Services Union lodged filings in the Federal Court alleging the bank had cheated employees out of $45 million by failing to allow them to take breaks.

The Fair Work Ombudsman launched legal action against the Commonwealth Bank last October for allegedly failing to pay $16.4 million to 7,425 workers.

Commonwealth Bank posted a statutory net profit of $9.7 billion for the 2021-22 financial year.

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