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A Fair Work Ombudsman investigation has recovered $5.3 million in wages for nearly 3,600 direct care employees of aged care organisations.
The average underpayment per employee was $1,478, the FWO said on Friday.
Of the 22 residential and home aged care providers investigated, 13 were found non-compliant with workplace laws in one or more areas. One provider remains under investigation.
The 13 non-compliant providers all underpaid employees.
Six residential aged care providers are now paying back $2.17 million to 2,338 employees. Two organisations paid a combined $4,620 in fines for record-keeping and payslip breaches.
Seven home care providers are back-paying $3.13 million to 1,253 employees.
The providers investigated by the FWO are based in Victoria, New South Wales, Queensland and Western Australia, but many operate across multiple states.
Fair Work Ombudsman Anna Booth said the results of the investigation send a message that aged care providers need to strengthen their compliance to ensure employees are being paid what they are owed.
“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,” Ms Booth 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.”
She said the leading causes of breaches were the incorrect:
- classification of employees
- calculation of overtime
- application of broken shifts
- payment of minimum engagement periods.
“Small errors in isolation can be costly across a large workforce. Improved payroll and rostering practices and a greater compliance focus can avoid these issues,” Ms Booth said.
The investigated employers had been cooperative and proactive, and commended those that conducted their own audits and back-paid employees beyond the scope of the investigation. Such actions indicate most employers are committed to putting in place assurance measures that strengthen their compliance practices, she said.
“We’d like to see this proactive audit approach replicated across the aged care sector.”
The FWO is now conducting inspections and investigations of 30 employers’ compliance in relation to aged care cleaning and catering employees.
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