Encompass Community Services knew about underpayment issues in 2019, start audit in 2021

Staff at a Geelong community service provider may be paid back with interest after an audit is completed following systematic underpayment across multiple years.

Another Geelong community service provider is investigating systemic underpayment of staff across multiple years.

Encompass Community Services has been aware of staff being paid under wrong awards since 2019, according to a report seen by the Geelong Advertiser.

In April this year consultants ‘HR4 Business’ were called into investigate pay issues as part of wider human resources overhaul at Encompass.

Sources have told the Geelong Advertiser the audit’s focus is on staff working under incorrect pay grades and awards, and staff not progressing to award-directed pay levels after 12 months of service.

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Encompass provides education and training, disability employment services and in-home care and has about 200 staff across 14 regions in Victoria including in Geelong and on the Bellarine.

Issues at Encompass come in the same week the Geelong Advertiser revealed disability service provider genU investigated the underpayment of staff across a six-year period and had back paid more than 130 employees.

Encompass chief executive Elaine Robb said the audit was about to be completed and may lead to staff being back paid with interest.

“In the interests of transparency, we engaged an external specialist, HR4Business, in early April this year to conduct an audit of our entire payroll to ensure compliance with our legal obligations,” Ms Robb said on Thursday.

“Encompass employs staff across six Modern Awards. The audit is not confined to a particular Modern Award based employee.

“That audit is almost complete and where it identifies a failure by Encompass to comply with the relevant Modern Award, it will be addressed directly with the impacted employee.

“Rectification may necessitate updated employment contracts, or it may include back payments to staff including interest where applicable.

“On occasion, like any large employer, we are made aware of Modern Award changes which can lead to compliance concerns and that may potentially result in an underpayment.

The audit is being conducted for staff employed over multiple years but Ms Robb would not specify the time period when asked.

About pay issues at Encompass, one source said: “It has been a systemic issue over a very long period of time, it will be a significant amount that’s been underpaid.”

Of the potential underpayment of staff another source, a former staff member, said: “It’s not fair or right people are essentially having money stolen. I knew something wasn’t right but I didn’t know the full extent of it.”

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

Ms Robb wrote to employees in March highlighting potential issues.

“It has been brought to my attention recently that there may be some anomalies in the organisation’s current approach to the application of the (Social, Community Home Care, and Disability Services) Award (2010),” an email from Ms Robb read.

“HR4 Business will undertake an audit of the organisation’s current HR framework including documentation, systems and processes with the aim of ensuring we are operating at a best practice level, considering the size of the organisation and the sector in which we operate.”

Some staff have also contacted the Fair Work Commission to make complaints about underpayment since leaving the organisation.

Originally published as Encompass Community Services knew about underpayment issues in 2019, start audit in 2021