In a significant wage remediation case within the Australian aged care sector, Southern Cross Care (NSW & ACT) has agreed to repay over $11.7 million to thousands of its employees. The not-for-profit organisation, which operates 54 residential facilities across NSW and the ACT, self-reported the extensive error to the Fair Work Ombudsman (FWO) after an employee raised concerns about overtime pay, prompting an internal audit in 2023.
The underpayment issue stretched over seven years, from July 2017 to October 2024, and affected a wide range of workers, including home care employees, nurses, nursing assistants, facility managers, and support staff such as cooks and maintenance personnel. While the average compensation owed to workers is approximately $1,716, some individuals faced staggering discrepancies; one employee was found to be owed nearly $44,593 in unpaid wages, superannuation, and interest.
Southern Cross Care attributed the underpayments to outdated systems, notably a manual payroll process and a flawed time-and-attendance system that failed to accurately calculate overtime, weekend penalties, and shift allowances in accordance with enterprise agreements. Fair Work Ombudsman Anna Booth highlighted this case as a critical warning to Australian employers about the potential financial repercussions of neglecting worker entitlements.
According to the terms of an Enforceable Undertaking, Southern Cross Care has already returned $10.1 million to more than 3,600 identified employees. The organisation is now mandated to locate remaining eligible staff within 60 days, or it risks forfeiting the unclaimed wages to the Commonwealth Consolidated Revenue Fund.
Beyond the financial repayments, Southern Cross Care is required to significantly revamp its payroll technology, fund independent compliance audits, and set up an external whistleblower hotline to prevent such systemic issues from recurring. The provider’s services cover a broad area, including Sydney, the Central Coast, and the far north coast regions.
The FWO commended Southern Cross Care’s cooperation and transparency, which played a crucial role in opting for an Enforceable Undertaking rather than pursuing more severe legal action. A spokesperson from Southern Cross Care stated that the provider responded promptly upon discovering the errors, ensuring current employees received their due compensation, while working to rectify payments for former staff. Current and former employees are encouraged to reach out to either the provider or the Fair Work Infoline for assistance.