The Independent Education Union is calling for urgent regulatory investigations into Redeemer Baptist School's workforce arrangements
Image source: Redeemer Baptist School
Australia's peak union for non-government school staff is demanding immediate regulatory investigations into Redeemer Baptist School in North Parramatta, New South Wales, after a weekend of revelations that the school's entire workforce operates without wages – classifying all teachers and support staff as church volunteers.
The Independent Education Union of Australia New South Wales/ACT Branch (IEU) issued a public statement today (22 June) calling on the NSW Education Standards Authority (NESA), the Office of the Children's Guardian, and the Fair Work Ombudsman to investigate the school's employment arrangements.
"Allegations include that the school is not paying its staff and that teachers are 'volunteers' not employees," the IEU said in its statement, adding that additional allegations raised "serious child protection concerns."
The IEU's intervention follows a joint investigation published by The Sydney Morning Herald and The Age, which revealed that Redeemer Baptist School had received approximately $106.7 million in combined government grants and parent fees between 2015 and 2024, according to financial records examined by Clinton Free, Professor of Accounting at the University of Sydney in New South Wales – while reporting zero salary expenses across that entire period.
What the financial records show
Professor Free described the school's accounts as "a deeply unusual set of accounts that raise a whole raft of issues." He noted that labour costs typically account for between 60 and 75 per cent of overall expenses at comparable schools. At Redeemer Baptist School, that figure is zero.
Instead of paying wages, the school classifies all staff as members of the Ministry Order of Redeemer Baptist Church – a religious order. Staff receive a discretionary stipend of approximately $2,000 per month, according to accounts from former church members cited by The Sydney Morning Herald. By comparison, the minimum award wage for a teacher in NSW is $7,515 per month.
Because staff are classified as volunteers rather than employees, standard obligations under Australian employment law – including superannuation contributions – do not appear to apply. The school did not specifically address the question of superannuation in its public response.
What does this mean for HR and employment law compliance?
For HR leaders and employment law practitioners across Australia, the case raises significant questions about the boundary between genuine volunteering and disguised employment – a distinction the Fair Work Act 2009 (Cth) and related instruments are designed to protect.
The IEU made clear that teachers and support staff in non-government schools are ordinarily covered by enterprise agreements providing salaries broadly comparable to those in NSW government schools. Where no enterprise agreement exists, a federal minimum award and legislated conditions (including the superannuation guarantee) still apply.
"It appears that the school's teacher 'volunteers' are not receiving even these minimum conditions," the union said.
This is not the first time the arrangement has attracted scrutiny. A 2006 NSW Supreme Court ruling held that the stipend paid to Ministry Order members could not be classified as a wage or salary. However, as Professor Free observed, "It's been 20 years" and the legal and regulatory landscape around worker classification has changed significantly since that decision.
HR leaders overseeing workforces in faith-based or charitable organisations will recognise the broader tension here: the law permits genuine volunteering, but regulators and courts look at substance over form. Where workers are directed in terms of hours, duties, and expectations, they may meet the legal definition of an employee regardless of how they are labelled.
Regulators and ministers respond
NSW Education Minister Prue Car and federal Education Minister Jason Clare both described the allegations as "deeply concerning" and "very serious." Minister Clare has referred his department to investigate, and Minister Car confirmed that NESA is investigating.
Federal assistant minister for charities Andrew Leigh stated he had referred the concerns to the Australian Charities and Not-for-profits Commission (ACNC) for further examination.
Redeemer Baptist School, in a public statement, said its governance and operations "adhere to Australian regulations and laws" and that the school "meets the requirements of the NSW and Federal governments." The church said all members of its Ministry Order have "chosen a lifestyle of sacrifice" and that their work is voluntary.
For HR professionals navigating complex workforce structures, particularly in the not-for-profit and faith-based sectors, this case is a timely reminder of the compliance risks that attach to volunteer-classification models.
