More than 1,700 current and former staff were underpaid between 2018 and 2024
Disability services provider Sunnyfield has back-paid about $5.36 million to a total of 1,633 current and former employees who it underpaid between 2018 and 2024.
According to a media release from the Fair Work Ombudsman (FWO), Sunnyfield's back-payment consists of $4.47 million in wages and entitlements, as well as nearly $900,000 in combined superannuation and interest.
About $78,500 remains unpaid for 134 employees who have not yet been located, according to the FWO.
Compliance issues at Sunnyfield
The back-payments come after Sunnyfield identified and self-reported to the FWO in October 2024 compliance issues relating to employee pay point progression.
The issues were identified after an external payroll audit, which found that pay point progression requirements under the Social, Community, Home Care and Disability Services (SCHADS) Industry Award 2010 and an enterprise agreement had been applied inconsistently.
This led to underpayments affecting a total of 1,767 current and former Sunnyfield employees, including community support workers, service coordinators, team leaders, and service managers, who worked in full-time, part-time, and casual roles.
The average underpayment reached $3,078, while the highest underpayment for an individual hit $23,378, including superannuation and interest.
Impacted entitlements include base rates of pay, casual loading, weekend penalties, overtime, shiftwork penalties, annual leave, personal leave, community service leave, and public holiday payments.
"Sunnyfield's underpayments highlight the importance of regular reviews of payroll systems and practices, to make sure employees are receiving all the entitlements they're owed under the relevant award or agreement," said Fair Work Ombudsman Anna Booth in a statement.
"Employers should not assume long-standing payroll practices, including on pay point progression, are compliant. Regular reviews, strong governance, and effective oversight are essential."
Enforceable undertaking with the FWO
Sunnyfield has signed an Enforceable Undertaking (EU) with the FWO after the underpayments, under which it is committing to a range of measures to ensure compliance with workplace laws.
Its commitments include undertaking two independent audits, enhancing worker voice mechanisms, workplace relations training, and strengthening board oversight of compliance matters.
"We welcome Sunnyfield's commitment to rectifying its non-compliance issues and putting in place measures to ensure employees receive all workplace entitlements in future, including increased avenues for workers to speak up, and better board oversight," Booth said.
Sunnyfield is a National Disability Insurance Scheme-registered organisation that offers supported independent living, specialist disability accommodation and lifestyle programmes across New South Wales.
Booth said the disability support services sector is a "priority for the FWO" amid a high number of enquiries and requests for assistance alleging non-compliance that it receives from employees.
Last year, the FWO launched an inquiry into the compliance of disability support services sector employers with workplace relations law. It aims to uncover the key drivers of non-compliance in the sector.
