Encompass Community Services knew about staff underpayment for three years insiders say

Insiders at a Geelong community service provider have shone a light on lackadaisical workplace practices surrounding the underpayment of staff over at least three years.

A major provider of education and training, disability employment services and in-home care ignored a warning in 2019 it was paying staff below minimum award rates, insiders say.

Geelong based Encompass Community Services finally moved to investigate underpayment in April this year, calling in consultant HR4 Business as part of a wider human resources overhaul.

The Geelong Advetiser has obtained a “Corrective Action Plan” produced in September 2019 by workplace relations consultant Employsure which recommended immediate action on seven “high risk” issues after it found:

STAFF were paid under wrong classifications resulting in payments below minimum wages set out in awards;

CONDITIONS for part time employees working irregular hours potentially breached the Clerks Award;

EMPLOYMENT contracts did not meet best practice making “ongoing management of employees more difficult”;

PEOPLE management staff did not receive “specific training” to manage workplace disciplinary and performance issues; and

EMPLOYMENT policies were developed on an ad hoc basis.

Encompass has about 200 staff across 14 regions in Victoria including in Geelong and on the Bellarine.

Encompass Community Services chief executive officer Elaine Robb pictured in 2013.

The organisation was also warned in 2019 underpayment “exposed the business to penalties for breach of the award and underpayment of wage claims.”

The action plan recommended Encompass “ensure employees receive any applicable overtime, penalty rates, loadings and allowances in accordance to the award.”

A former Encompass staffer told the Geelong Advertiser underpayment for casuals continued this year.

Another with knowledge of the Employsure report said pay issues were “systemic” over “a very long period of time” and would result in “a significant amount that’s been underpaid.”

The Geelong Advetiser is aware a former Encompass employee who took organisation to the Fairwork Commission in 2015 where a claim was approved for unfair dismissal and underpayment.

The Geelong Advertiser asked Encompass chief executive Elaine Robb to explain how the organisation responded to the 2019 Employsure report but she did not respond by deadline.

Responding to previous questions, Ms Robb said an audit of payroll and employment conditions may lead to staff being back paid with interest.

“In the interests of transparency, we engaged an external specialist, HR4Business to conduct an audit of our entire payroll to ensure compliance with our legal obligations.”

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Originally published as Encompass Community Services knew about staff underpayment for three years insiders say