Community Living & Respite Services Inc (CLRS) has back-paid staff more than $3 million and entered into an Enforceable Undertaking (EU) with the Fair Work Ombudsman.
The not-for-profit organisation, which is accredited to provide disability services in the New South Wales-Victoria border towns of Echuca and Moama and surrounding areas, self-reported its non-compliance to the FWO in 2021.
CLRS underpaid employees' minimum wages between 2015 and 2021 due to its failure to correctly implement the Equal Remuneration Order made by the Fair Work Commission in 2012.
The Equal Remuneration Order increased minimum weekly rates for some employees in the social, community, home care and disability services industry.
CLRS first identified underpayments during the process of the Fair Work Commission terminating the Enterprise Agreement that covered CLRS staff from 2010 to 2021 and CLRS staff transitioning to the Social, Community, Home Care and Disability Services Industry Award 2010.
The underpaid CLRS employees were primarily disability and aged care workers and included full-time, part-time and casual workers. They provided services to CLRS clients in residential homes and care facilities.
CLRS has paid 391 current and former employees a total of $3.17 million, including back-pay, superannuation and good will payments. Individual payments range from $15 to $34,874.
Fair Work Ombudsman Sandra Parker said that an EU was appropriate because CLRS had cooperated and demonstrated a strong commitment to rectifying underpayments.
"CLRS has made significant improvements to its compliance processes since becoming aware of the underpayments, and under the Enforceable Undertaking has committed to further measures to ensure workers are paid correctly. These measures include engaging, at the company's own cost, an independent auditor to conduct an audit and assess its compliance with workplace laws later this year," Ms Parker said.
"This matter demonstrates the importance of employers placing a high priority on having processes that will ensure they are always fully across workplace laws affecting their industry. In this matter, CLRS's failure to ensure it complied with a significant change in its sector has led to underpayment of basic employee entitlements and a big back-payment bill."
"Any employer who needs help meeting their lawful obligations to their employees should contact the Fair Work Ombudsman for free advice and assistance."
Under the EU, CLRS is also required to write to staff to notify them of the underpayments and operate an enquiry line for employees.
