More than 3,600 aged-care workers across five Australian states have recovered a total of over $5.3 million in unpaid wages following an investigation by the Fair Work Ombudsman (FWO). The probe, which examined 22 aged-care providers in Victoria, New South Wales, South Australia, Queensland, and Western Australia, uncovered widespread underpayments involving both residential and home care services.
The FWO identified 13 providers who had underpaid employees, with six residential aged-care organisations reimbursing 2,338 workers a combined $2.17 million and seven home care providers compensating 1,253 employees more than $3.13 million. The average underpayment amounted to approximately $1,478 per worker.
Key compliance breaches included failing to pay minimum rates of pay, not compensating broken shift entitlements, neglecting minimum engagement periods, and underpaying overtime. Additional violations involved inadequate record-keeping, missing pay slips, and failure to provide staff with the Fair Work Information Statement. One provider was also found to have advertised wages below the minimum legal rate.
Fair Work Ombudsman Anna Booth underscored the importance of robust payroll systems and staff training to ensure proper wage payments. “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,” Booth said. She cautioned that even small errors could accumulate into substantial liabilities when spread across large workforces.
Following the investigation, the FWO issued 16 compliance notices to the providers involved. Two residential care providers also paid combined fines totalling $4,620 for breaches related to record-keeping and payslips. Many employers inspected were selected based on previous non-compliance, anonymous employee reports, or their use of visa-holding workers, who represent a significant portion of the aged-care workforce.
Several providers cooperated fully with the inquiry, conducting internal audits and voluntarily compensating workers beyond the FWO’s minimum findings. In one notable case, a home care employer identified underpayments affecting more than 600 casual employees due to incorrect application of broken shift allowances and minimum engagement rules. The provider promptly sought external legal advice, carried out a comprehensive workforce audit, back-paid over $2 million dating back to 2023, updated payroll systems, and trained staff to prevent future breaches.
The FWO’s efforts continue with inspections now underway targeting 30 employers regarding compliance for cleaning and catering employees within aged care, focusing on pay slips, record keeping, and wage rates.
ACTU president Michele O’Neil welcomed the back payments as a positive step for aged-care and community-care workers, even as the union expressed disappointment that recent increased allowances were not extended to other sectors such as fast food, retail delivery, maintenance trades, firefighters, and nurses. According to O’Neil, the wage improvements are crucial for workers managing everyday expenses, including transport costs.