Uniting Communities finds it owes years of backpay, super to staff

Not-for-profit Uniting Communities faces a backpay burden after discovering it underpaid staff for years, and is now working out how much pay, interest and superannuation it owes.

Support and advocacy group Uniting Communities has discovered it owes years of backpay to staff and now faces a hefty bill for wages, superannuation and interest payments.

The not-for-profit organisation has reported itself to the Fair Work Ombudsman over the issue which it blames on complex enterprise agreements governing employment deals struck by other not-for-profit groups.

The shortfall in pay and entitlements extends throughout its workforce including senior management, who were the first to raise the issue of underpayment in February leading to a review.

A Uniting Communities statement said it estimated less than $2m is owed to about 400 current and 550 former staff.

Advocacy group Uniting Communities faces a hefty bill for wages, superannuation and interest payments. Picture: Peter Barnes

“UC’s financial position enables us to meet these backpayment obligations with no impact on our services, contracts or financial sustainability of the organisation,” it said.

“Our focus is on getting backpayments to staff as a priority with more than half of the outstanding payments being paid by the end of the month.

“The inconsistencies in wage payments occurred as a result of the complexity and diversity of enterprise agreements and related awards that apply to staff and deficiencies in our approach to managing this complexity and checking for errors at times when annual rate increases were reviewed.”

Uniting Communities executive manager for people, brand and assurance, Richard Laidlaw, has written to staff repeatedly apologising for the situation, saying the review “found inconsistencies in some payments made to a number of current and former staff over a number of years.”

“We have corrected your current hourly rate which has taken effect from 15 May 2023, and we have put in place further checks and balances including protections in the payroll system,” his letter said.

“We are working to ensure that all affected staff receive all backpay owed with superannuation and interest as soon as possible.

“Superannuation is being calculated at the rate in place at the time backpayments will be made. Interest will also be paid on outstanding backpay amounts at the rate of 4.5 per cent per annum.”

Uniting Communities has engaged an expert accounting firm to review wage payments and confirm the amounts of backpay owed to affected staff which is likely to take until September to conclude.

Mr Laidlaw’s letter said Uniting Communities valued its staff and their work.

Originally published as Uniting Communities finds it owes years of backpay, super to staff