Disability services provider Yooralla has entered into an Enforceable Undertaking with the Fair Work Ombudsman after rectifying $2.05 million in underpayments, including interest and superannuation, to more than 1,300 underpaid staff.
The not-for-profit organisation, which operates across Melbourne and regional Victoria, has committed to a range of measures to ensure compliance with workplace laws in future.
Yooralla first became aware of its issues when it received a query from a casual employee about whether they were receiving the correct shift loading entitlement.
That prompted Yooralla to conduct a comprehensive review, including engaging an external consultant, which led to the organisation self-reporting its non-compliance to the Fair Work Ombudsman in 2024.
Most of the underpaid workers were casual disability support workers based in Melbourne.
Yooralla workers missed out on entitlements such as the casual shift loadings and casual overtimes rates they were entitled to under its Enterprise Agreements.
Other underpaid entitlements included penalty rates for broken shifts spanning more than 12 hours and a higher duties allowance for high intensity support work.
Some full-time and part-time workers were also underpaid.
The underpayments were the result of Yooralla failing to ensure it understood entitlements payable under its Enterprise Agreements and poor governance, including not ensuring its payroll system included all applicable pay rates and entitlements.
Limitations with the payroll system Yooralla implemented also led to the organisation often failing to identify when employees had worked shifts that attracted penalty rates.
Yooralla has rectified all identified underpayments, paying $2.05 million to 1,389 current and former employees it underpaid between March 2018 and March 2024. This included $1.794 million in underpaid wages and entitlements, more than $180,000 in superannuation and more than $78,000 in interest.
Back-payments to impacted individual workers ranged from less than $1 to over $22,000, including superannuation and interest, with an average back-payment of about $1470.
Fair Work Ombudsman Anna Booth said an Enforceable Undertaking was an appropriate outcome as the not-for-profit organisation had fully cooperated with the FWO's investigation.
"We welcome Yooralla's commitment to rectifying its non-compliance issues and ensuring future compliance for their workers," Ms Booth said.
"The matter serves as a warning of the significant long-running problems that can result from an employer not prioritising compliance with minimum pay laws.
"There are too many organisations that are placing far too low a priority on ensuring their payroll systems are compliant and that they have a system in place to regularly check they are providing their employees with all lawful minimum entitlements.
"Employers should also be aware that improving compliance in the disability support services sector is a priority for the Fair Work Ombudsman."
Under the Enforceable Undertaking, Yooralla has committed to a range of measures to ensure ongoing compliance, including:
- completing a comprehensive review of its workplace compliance and back-paying any further amounts owed,
- commissioning an independent audit of its workplace compliance and rectifying any issues identified,
- reporting to the Fair Work Ombudsman on improvements to its payroll systems to prevent future underpayments,
- operating a hotline for employees to raise questions about their pay and entitlements,
- strengthening consultation through its Joint Consultative Committee with employees and union representatives, with regular updates provided to the regulator, and
- informing staff about the Enforceable Undertaking through direct communication and internal channels.
