One of Australia's big financial institutions is being sued for employment practices at its private wealth unit, a report said.

Australia-listed banking and investments group Macquarie must defend how it structures its private wealth unit’s employment contracts after a group of 15 former advisors sued it, according to a media report.

A statement of claim, lodged with the Federal Circuit Court of Australia a few days ago, alleges a string of breaches of the Fair Work Act by Macquarie's banking division, according to the Australian Financial Review. WealthBriefingAsia has contacted Macquarie seeking comment and may update in due course. 

AFR said potential breaches relate to claims of underpaying advisors' entitlements spanning their annual leave, public holidays, leave loading and compassionate and carer's leave. The group of former private client advisers claims Macquarie failed to comply with National Employment Standards and the modern award covering the banking, finance and insurance industry.

The John Wardman-led group is seeking to be reimbursed for total underpayments of A$2.6 million plus interest, penalties and legal costs and also wants Macquarie to be issued with pecuniary fines.

The lawsuit comes at a time when Australia’s banking and wealth management sector has been battered by a set of scandals and revelations in recent months, some of them arising from a royal commission that the current administration set up to probe practices in the sector. Organisations such as Commonwealth Bank of Australia, ANZ and AMP have been in the firing line.

A Macquarie spokesperson was quoted by AFP as saying the bank "will be defending these proceedings".