Disability services provider Sunnyfield has signed an Enforceable Undertaking (EU) with the Fair Work Ombudsman (FWO) after underpayments of about $5.43 million, including superannuation and interest, for more than 1,700 workers.
Sunnyfield is a National Disability Insurance Scheme-registered organisation and charity offering supported independent living, specialist disability accommodation and lifestyle programs across NSW.
A total of 1,767 current and former employees were underpaid between 2018 and 2024, as a result of failures to progress employees to their correct pay points.
About $5.36 million has been already back-paid to 1,633 current and former employees, made up of $4.47 million in wages and entitlements and nearly $900,000 in combined superannuation and interest.
A small balance of just over $78,500 is outstanding for 134 former employees who have not yet been located.
The highest underpayment of an individual was $23,378 (inclusive of superannuation and interest), with the average underpayment being $3,078, and the lowest $1.
Affected employees worked as community support workers, service coordinators, team leaders and service managers, in full-time, part-time and casual roles.
Sunnyfield reported the underpayments to the FWO in October 2024 after an external payroll audit identified compliance issues relating to employee pay point progression.
Its review found that pay point progression requirements under the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award) and an enterprise agreement had been applied inconsistently, leading to underpayments when some employees were not progressed to the correct pay point.
Impacted entitlements included base rates of pay, casual loading, weekend penalties, overtime, shiftwork penalties, annual leave, personal leave, community service leave and public holiday payments.
Under its EU with the FWO, Sunnyfield has committed to a range of measures to ensure ongoing compliance with workplace laws.
These include undertaking two independent audits, enhancing worker voice mechanisms, workplace relations training, and strengthening board oversight of compliance matters.
Fair Work Ombudsman Anna Booth said an EU with Sunnyfield was appropriate because the organisation had self-reported non-compliance, fully cooperated with the investigation, back-paid all employees it was able to find to date, and committed to significant measures to prevent future non-compliance.
“Sunnyfield’s underpayments highlight the importance of regular reviews of payroll systems and practices, to make sure employees are receiving all the entitlements they’re owed under the relevant award or agreement,” Ms Booth said.
“Employers should not assume long-standing payroll practices, including on pay point progression, are compliant. Regular reviews, strong governance and effective oversight are essential.
“We welcome Sunnyfield’s commitment to rectifying its non-compliance issues and putting in place measures to ensure employees receive all workplace entitlements in future, including increased avenues for workers to speak up, and better board oversight.
“More broadly, the disability support services sector is a priority for the FWO, given the high number of enquiries, and requests for assistance alleging non-compliance, we receive from employees.
“Our Inquiry into compliance with workplace relations laws by businesses in the Disability Support Services sector, which commenced last year, is assisting the FWO uncover the key drivers of non-compliance.”
