The provider discovered the underpayments after an employee asked about overtime entitlements. Photo: Facebook/Southern Cross Care (NSW & ACT).
Southern Cross Care (NSW & ACT) is rectifying more than $11.7 million in underpayments to 5500 staff across its aged care, home care and retirement living services as part of an enforceable undertaking.
The provider has already paid back $10,135,122, including interest and superannuation, to 3603 employees across its 27 retirement communities and 27 residential care homes.
These are located across Canberra, the Riverina, Sydney, the Central Coast and the Far North Coast.
Affected workers included home care employees, assistants in nursing, registered and enrolled nurses, facility managers, diversional therapists, cooks and handypersons.
Full-time, part-time and casual staff were all impacted.
According to the Fair Work Ombudsman, the provider reported that its underpayments were caused by issues with its time and attendance system, as well as a manual payroll process “inconsistent with enterprise agreement requirements”.
“A further review it commissioned found provisions relating to overtime, allowances and shift penalties in an enterprise agreement had been applied incorrectly,” an Ombudsman statement said.
“Employees were underpaid their overtime, weekend penalties, shift loadings and annual leave loading, as well as other entitlements owed under the enterprise agreements such as various types of allowances.”
The issue was discovered after an employee asked about overtime payments. This led the provider to self-audit in 2023 and it then self-reported its non-compliance to the Fair Work Ombudsman in November 2023.
Underpayments were identified for the period from July 2017 to October 2024.
Wages are still outstanding for 1897 people. If Southern Cross Care (NSW & ACT) can’t find them within 60 days (from 2 April), the money will be paid to the Commonwealth Consolidated Revenue Fund.
Individual back payments range from less than $1 to $44,593, including superannuation and interest. The average back payment was $1716.
Fair Work Ombudsman Anna Booth said an enforceable undertaking (EU) was appropriate as the not-for-profit employer had cooperated with the FWO’s investigation, showed commitment to rectifying underpayments and preventing them in the future.
“Under the Enforceable Undertaking, Southern Cross Care (NSW & ACT) has committed to replacing its time and attendance system, as well as commissioning an independent audit, at its own cost, to check its compliance with workplace laws,” she said.
Ms Booth said the matter showed employers must check that their systems were fit-for-purpose and meet obligations to pay employees all their correct pay and entitlements.
“The matter serves as a warning of the significant long-running problems that can result from an employer failing to have appropriate checks and balances to ensure workplace compliance,” she said.
“Worker entitlements such as overtime and weekend penalties are important and can soon create a large underpayment bill if they’re not correctly paid when they should be.”
The EU commits Southern Cross Care (NSW & ACT) to establishing several means for employees to voice their views and experiences, including surveys, an anonymous feedback form, monthly team meetings and an external hotline for whistleblower complaints.
A Southern Cross Care (NSW & ACT) spokesperson said the company had worked hard to repay those employees who were owed money.
“All affected current staff have been properly compensated. We continue to rectify payments for former employees and are strengthening our systems and processes to ensure this does not happen again,” the spokesperson said.
“As a purpose-driven, not-for-profit aged care provider, we deeply value our workforce and the difference they make in the lives of older Australians every day.”
Employers and employees can call the Fair Work Infoline on 13 13 94 for free advice and assistance. An interpreter service is available on 13 14 50. Workers can also seek information from their employer or their union.
Original Article published by Claire Fenwicke on Region Canberra.
