Australian Unity workers underpaid $4.25m

Apology to aged and home care workers as Australian Unity becomes latest major company to admit underpaying by millions.

Australian Unity chief executive Rohan Mead. Picture: David Caird

Australian Unity has apologised to employees after admitting to underpaying their wages and entitlements by about $4.25 million.

In the latest multimillion-dollar underpayment by a major company, Australian Unity said a “significant proportion” of its 4000 aged and home care employees had been impacted.

The company said a payroll review found instances of underpayment and overpayment of entitlements, including wages, shift loadings and allowances to current and past employees in the company’s Independent & Assisted Living business.

The review also identified errors in superannuation payments.

“The review found wages and entitlements underpayments of approximately $4.25 million, or less than 0.2 per cent, over a period where total wages and entitlements outlays were some $2.4 billion,” the company said.

The $4.25 million estimate does not include superannuation or the interest on wages and entitlements, which are still being calculated.

Australian Unity Group chief executive Rohan Mead said the company would seek to rectify the errors as quickly as possible.

“We’re sorry this has happened,” Mr Mead said. “We always aim to pay our people correctly.

“We will make good for everyone affected as quickly as possible, while at the same time putting investment and resources into making our payment processes efficient and effective for the future.”

Australian Unity has reported the underpayments to the Fair Work Ombudsman and the workplace regulator confirmed on Friday it was conducting an investigation.

“We expect any employers that identify noncompliance to fully co-operate with our investigations to ensure that employees are quickly repaid their entitlements,” a FWO spokesman said.

“Any workers with concerns about their pay should contact us for assistance.”

In an email to employees, Mr Mead said the company undertook the payroll review “in light of the many reports across Australian employers of errors in the administration of pay”.

“We will address these matters fully and appropriately,” he said.

“This includes making full repayment of any wage payment errors and the application of a 5.5 per cent interest rate compensation to these amounts.”

He said the company would not seek to recover the overpayments.

“I am personally disappointed by the errors we have uncovered in this review,” he said.

“And I say again I am very sorry that they have occurred. It has always been our character as an organisation to take our obligations most seriously.

“Please note my assurance that we will make good on our errors here and make investments to prevent them re-occurring.”

A company spokesman said Australian Unity would seek to finalise all repayments over the next few months. “For the majority, the underpayments were under $100,” he said.