Community Living and Respite Services forced to backpay workers more than $3m

An Echuca and Moama disability and aged care support service underpaid its workers more than $3m.

A massive underpayment of wages to disability and aged care support workers in Echuca and Moama, which resulted in more than $3m being back paid, was likely just the “tip of the iceberg for the sector” a union boss has warned.

Community Living and Respite Services has paid a total of $3.17m in wages, superannuation and good will payments to former and existing staff, the Fair Work Ombudsman has revealed.

Chief executive Leah Taffee said the not-for-profit organisation had dobbed itself into the Ombudsman after an internal review had identified the pay error.

Health And Community Services Union state secretary Paul Healey said the sector was rife with “zombie agreements” that had been signed off before 2012 and were no longer valid.

“The lack of support provided to disability workers means that workers’ rights can be forgotten,” he said.

“In this instance hundreds of workers have been left worse off by over $3m.

“The employer has done the right thing — something we always want to see.

“But we don’t know how many other essential workers have been working for years while being denied their legal entitlements.”

Ombudsman Sandra Parker said the service provider had underpaid employees’ minimum wages between 2015 and 2021 because it failed to correctly implement the Equal Remuneration Order made by the Fair Work Commission in 2012.

The underpaid employees were primarily disability and aged care workers in full-time, part-time and casual roles.

They provided services to clients at residential homes and care facilities.

The repayments to individuals ranged from $15 to $34,874.

Ms Taffee said all payments to former and current staff had been finalised in August 2021 and would not impact services going forward.

“From our perspective it feels like a long time ago,” she said.

“We have been open and transparent about this.”

Ms Taffee said she believed the Ombudsman’s office was only revealing the results now because it had finished its review and was satisfied with the outcome. The organisation signed an enforceable undertaking with the Ombudsman.

Ms Parker said the service provider had made improvements to its compliance processes and, under the enforceable undertaking, had committed to further measures.

“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,” she said.

Mr Healey said it was very hard for workers to know if they were being paid properly.

“Disability workers fought incredibly hard for the Equal Remuneration Order to recognise their specialist work, and for these low-paid workers every single cent of an underpayment impacts their day to day life.”