Self-audit triggered by employee concern in 2023
An aged care provider in New South Wales and the Australian Capital Territory has agreed to repay more than $11.7 million in underpayments to about 5,500 employees after entering into an Enforceable Undertaking with the Fair Work Ombudsman.
Southern Cross Care (NSW & ACT), a not-for-profit organisation operating across 27 retirement communities and 27 residential care homes, underpaid workers over a period spanning July 2017 to October 2024. The underpayments covered overtime, weekend penalty rates, shift loadings, annual leave loading, and various allowances under its enterprise agreements.
The organisation identified the discrepancies following a self-audit initiated in 2023 after an employee raised concerns about overtime payments. It self-reported its non-compliance to the Fair Work Ombudsman in November 2023. A further review it commissioned found that provisions relating to overtime, allowances, and shift penalties had been applied incorrectly.
Affected workers included home care employees, assistants in nursing, registered and enrolled nurses, facility managers, diversional therapists, cooks, and handypersons employed on casual, full-time, and part-time bases.
Discrepancies during transition
Southern Cross Care attributed the underpayments to faults in its time and attendance system and a manual payroll process that was inconsistent with enterprise agreement requirements.
As of the announcement, the organisation had back-paid 3,603 employees a total of $10,135,122, including interest and superannuation. Individual back payments ranged from less than $1 to $44,593, with an average of $1,716. Employees who cannot be located within 60 days will have their outstanding wages transferred to the Commonwealth Consolidated Revenue Fund.
Fair Work Ombudsman Anna Booth said the Enforceable Undertaking was appropriate given the organisation’s cooperation and its commitment to future compliance.
“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,” Booth said.
She added that the case carried broader implications for employers.
“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,” Booth said.
Under the terms of the undertaking, Southern Cross Care must also train staff on the new system, report regularly to its board and establish channels for employee feedback, including an anonymous feedback form and an external whistleblower hotline.
Recent cases highlight the scale of the issue. The Fair Work Ombudsman reported recovering $358 million for more than 249,000 underpaid workers in the 2024–25 financial year, with aged care identified as a priority sector for compliance activity.
