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The business was found to have short-changed almost 400 employees over six years.
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Disability services provider forced to back-pay over $3m
05 September 2022
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9 minute read
Disability services provider Community Living & Respite Services Inc (CLRS) has been forced to back-pay staff over $3 million and entered into an enforceable undertaking with the Fair Work Ombudsman.
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The underpayment comes as the healthcare and disability services industries face acute staff shortages and suggestions, including at the jobs summit last week, that low pay was a key disincentive for workers.
CLRS was found to have underpaid employees’ minimum wages between 2015 and 2021 through a 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 employees in the social, community, home care and disability services industry.
The remuneration growth from the order was dependent on the relevant award, with increases of 23–45 per cent applied to employees’ pay.
CLRS self-reported its non-compliance to the FWO in 2021 and was forced to back-pay 391 current and former employees over $3.17 million with individual payments ranging to more than $34,000, including superannuation and goodwill.
Fair Work Ombudsman Sandra Parker said that the enforceable undertaking was the appropriate course of action due to the business’ cooperation and demonstration of commitment to rectifying underpayments.
“CLRS has made significant improvements to its compliance processes since becoming aware of the underpayments, and the enforceable undertaking has committed to further measures to ensure workers are paid correctly,” said Ms Parker.
“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.
“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.”
As part of the enforceable undertaking CLRS was also required to write to staff to notify them of the underpayments and operate an inquiry line for employees.
At the jobs summit Home Affairs Minister Clare O'Neil announced a lift in the permanent migration cap from 160,000 to 195,000 to try and fill labour gaps in the healthcare sector.
CLRS provides disability services in the NSW and Victorian border towns of Echuca and Moama as well as surrounding areas.
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