Thousands of aged care workers have been repaid more than $5.3 million after Fair Work Ombudsman (FWO) investigations uncovered underpayments at providers across Australia.
The regulator reviewed 22 residential aged care and home care businesses and found more than half had breached workplace laws. In total, 13 providers were found to be non-compliant, while one investigation remains ongoing.
Fair Work Ombudsman Anna Booth said the findings highlighted the importance of strong payroll and rostering systems in a sector employing large workforces across multiple sites.
“Aged care providers need to make sure their payroll systems are fit-for-purpose and payroll staff are properly trained to make sure employees are paid for every dollar they’re entitled to,” she said.
“The FWO calls upon aged care providers to invest in strengthening their payroll and rostering systems and to undertake their own, regular wage compliance audits – or potentially face big back-pay bills.”
The recovered wages were paid to almost 3,600 direct care employees, including personal care workers, registered and enrolled nurses, and assistants in nursing.
Home care providers accounted for the larger share of repayments, returning more than $3.13 million to 1,253 employees. Residential aged care providers repaid more than $2.17 million to 2,338 workers.
The investigations, which covered providers operating in metropolitan and regional areas across multiple states, revealed recurring problems with the application of award entitlements. Common issues included underpayment of minimum wage rates, overtime, broken shift allowances and minimum engagement periods.
The average underpayment per worker was $1,478.
Rather than pursuing court action, the FWO issued 16 Compliance Notices requiring providers to rectify breaches and repay affected staff. Two residential aged care providers were also fined a combined $4,620 for record-keeping and payslip breaches.
Ms Booth said payroll mistakes that appeared small on an individual level could quickly become significant when spread across a large workforce.
“The leading causes of breaches were the incorrect classification of employees, calculation of overtime, application of broken shifts and payment of minimum engagement periods. Small errors in isolation can be costly across a large workforce,” she said.
Employers were selected for investigation based on a range of risk factors, including previous compliance concerns, reports from workers and the employment of visa holders, who make up a significant part of the aged care workforce.
The regulator noted that many providers cooperated with investigators and took proactive steps to address problems once they were identified.
One home care provider repaid more than $2 million to over 600 casual employees after discovering errors in the way broken shift allowances and minimum engagement periods had been applied. The provider subsequently upgraded its payroll systems and provided additional staff training.
“The FWO commends the investigated employers who conducted their own audits and back-paid employees beyond the scope of our investigation,” Ms Booth said.
“We’d like to see this proactive audit approach replicated across the aged care sector.”
The FWO has now launched a new compliance drive targeting cleaning and catering staff working in aged care, with inspections and investigations underway at 30 employers. The regulator said those inquiries will examine pay rates, payslips and record-keeping practices.
Email: rebecca.cox@news.com.au
