Encompass Community Services boss Elaine Robb says she didn’t know about report exposing underpayment for 18 months

Who knew what about underpayment of staff at Encompass Community Services? A damning report produced in 2019 was only acted on this year.

A damning report identifying underpayment of staff and poor workplace policies at a major provider of community services was likely in the hands of senior staff for 18 months before its boss was notified.

Encompass Community Services chief executive Elaine Robb has told the Geelong Advertiser she was “made aware” of the report in March.

That’s despite the report being produced in September 2019 by national workplace relations consultant Employsure for Encompass’s then compliance manager and operations manager.

The report found staff were paid under wrong classifications resulting in payments below minimum wages set out in awards; part time employees working irregular hours were in potential breach of the Clerks Award; employment contracts did not meet best practice making “ongoing management of employees more difficult”; and employment policies were developed on an ad hoc basis.

Elaine Robb Encompass Community Services chief executive. Picture: Sarah Matray

On Friday Australia’s workplace umpire, the Fair Work Ombudsman, which investigates pay issues told the Addy it was probing Encompass.

DO YOU KNOW MORE? EMAIL: [e-mail]

“The Fair Work Ombudsman is conducting inquiries in relation to Encompass Community Services Incorporated,” a spokeswoman said.

“As this matter is ongoing, it is not appropriate to comment further at this time. Workers with concerns about their pay or entitlements are encouraged to contact us directly.”

The spokeswoman would not confirm what period the Ombudsman’s investigation would focus on or when allegations about pay issues were reported.

Encompass boss Elaine Robb was asked to explain why she only became aware of the Employsure report this year but didn’t respond by deadline.

In an earlier statement Ms Robb said she immediately took action once aware of the report.

“I...immediately engaged external assistance to provide Encompass with advice about its potential liability to its employees and the simplest and most efficient way to address that potential liability,” Ms Robb said.

“That process is well under way and our employees will be notified when the audit identifies an issue with their award classification and/or any other award based discrepancies in their employment.

“Encompass will make payments where required to its past and present employees in accordance with its obligations under the Fair Work Act 2009.”

The Geelong Advertiser contacted the compliance manager and operations manager named in the Employsure report and both refused to comment.

The compliance manager, the operations manager and the finance manager have left Encompass in the past year.

Two human resources staff employed in January also left the organisation about six weeks later.

Meanwhile the Victorian Wage Inspectorate responsible for investigating wage theft is encouraging anyone who believes they’ve been underpaid since July 1,2021 to make a report.

From July 1 wage theft became a criminal offence in Victoria with a person found guilty facing a fine of up to $218,088 or up to 10 years’ jail. A company can be slugged more than $1m for wage theft.

The laws, which are not retrospective, apply to deliberate and dishonest underpayment or withholding of wages and entitlements.

Trying to gain a financial advantage by falsifying or not preparing employee entitlement records has also become a crime.

Wage Inspectorate Victoria Commissioner Robert Hortle encouraged any employee who believed they were a victim of wage theft to make a report.

“We’re serious about tackling wage theft and have been given strong powers to make a real difference. Wage theft is never acceptable.”

Reports to the Victorian Wage Inspectorate can be made at: www.vic.gov.au/wage-theft-make-enquiry-or-report

Anyone who believes they’ve been underpaid before July 1,2021 should contact the Fair Work Ombudsman at www.fairwork.gov.au or 13 13 94.

Originally published as Encompass Community Services boss Elaine Robb says she didn’t know about report exposing underpayment for 18 months