‘Adecco scandal’ costs firm millions

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Human resources firm Adecco has reported a deficit of NOK 25.3 million (USD 4.7 million) for the last financial year following the effects of the revelations of illegal practices at its nursing homes and other operations.

The scandal began with revelations by Norwegian Broadcasting (NRK) that employees at the firm’s Ammerudlunden nursing home in Oslo had worked 84 hours a week without overtime pay, and slept in beds in the basement of the hospital. As the scandal spread to other nursing homes and sectors of Adecco’s operations, senior directors resigned, the company lost contracts with a number of local municipalities and had to pay back millions to the Oslo city council. The firm ended all of its operations in the care sector as a result.

The NOK 25.3 million deficit compared with a NOK 23 million (USD 4.3 million) surplus in 2009. Adecco’s end of year report, quoted by NRK, states that the deficit is a result of “back payment of unpaid overtime” as well as the correction of “other mistakes.” These costs are described by the company as “essential.”

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