At least three employees at an Aegis Australia call centre in Werribee had money taken from their pay for the amount of time they spent in the loo during their shift.
Staff at the outsourcing and contact centre company are required to explain if they are away from their desk for more than 90 seconds.
On returning to their computer after this time, they are sent an electronic alert prompting for exceptions to be made.
The employees are able to make up the time at the end of their shift.
Staff had reportedly threatened to report the matter to the Fair Work Ombudsman.
After the Herald Sun contacted the company, its chief executive, Andrew Hume, said the "minimal monies" deducted would be paid back to the concerned employees.
"Aegis call centre employees have scheduled start, break, lunch and finish times, which are managed through an electronic time and attendance system," Mr Hume said.
"If an employee is absent from their rostered schedule, they are sent an electronic alert updating them to the amendment and prompting for exceptions to be made.
"After detailed review, three instances were identified where the process had failed and time deductions were made that were incorrect against standard operating procedures.
"We have reinforced the process to ensure 100 per cent compliance.
"The concerned employees have each been spoken to and the minimal monies owed will be paid in the next pay cycle."
Aegis was recognised as an AON Hewitt Best Employer in 2011.
The Werribee centre employs more than 260 people.
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