YMCA caught underpaying hundreds of staff by $1m

Popular not-for-profit the YMCA has been caught underpaying staff with hundreds of employees, who have been left more than $1m out of pocket.

Popular not-for-profit the YMCA has been caught underpaying staff.

Popular not-for-profit the YMCA has been caught underpaying staff with hundreds of employees left more than $1m out of pocket.

Whistleblowers affected by the wage theft scandal say hundreds of part-time staff may have been impacted over an 18-month period in which employees were paid for fewer hours than they worked.

The Herald Sun understands senior YMCA officials are braced for the potential of a comprehensive probe by the Fair Work Ombudsman, who has launched a preliminary investigation into the matter.

It is understood the charity has underpaid staff more than $1m, with employees not being paid their full contracted hours.

It has led to a wide ranging review of the charity’s practices and the implementation of a new rostering system.

“This impacts many at-risk young people, the very people this organisation seeks to protect,” a source said.

While the full scale and impact of the scandal is not known, concerns have been raised within the organisation about how the matter has been handled.

It is a significant blow to the charity which in its last published annual report, for 2021-22, revealed a $6m loss despite generating revenue of $160m and holding $20m in assets.

Sources said shoddy bookkeeping and lax rostering arrangements had led to a wide scale remuneration problem.

YMCA’s affordable gyms are one of their main activities.

A YMCA Victoria spokesperson refused to answer detailed questions about the issue, including when underpayments were first detected.

“YMCA Victoria has been keeping staff informed about an ongoing major project to clarify and simplify our processes for on-boarding, recording rostering, time and attendance, qualifications and staff payments,” she said.

“We have let staff know we will soon start the progressive rollout of a new rostering, time and attendance system.

“We are working hard to make sure we continue to keep staff up to date on the progress of this project and how this will affect them and their work.

“Should we discover any issues as we introduce the new platform we are committed to resolving them at a system and individual level.”

It is not the first time the charity has been embroiled in a payroll bungle.

In 2015 it was forced to admit a system administrator error saw superannuation paid into the wrong account of 1486 YMCA Victoria staff.

The YMCA is a charity with more than 5000 staff and volunteers across the state.

The charity’s popular, affordable gyms are one of their main activities, along with camps, childcare services and youth justice programs.

The Fair Work Ombudsman may start an investigation or inquiry even if affected employees have been back paid.

Under the Fair Work Ombudsman’s compliance policy, decisions about whether to launch an investigation include whether a matter involves vulnerable workers, shows a disregard of laws, or is of a significant scale.

“The Fair Work Ombudsman will conduct enquiries into YMCA Victoria,” a spokesperson said.

“We encourage any workers with concerns to contact us directly for assistance.”