Fair Work Ombudsman
Citation: FWO-2023-10-12-aruma-services-eu-media-release
At a glance
- Penalty
- $6,500,000
- Employees affected
- 1004
What happened
Aruma Services Limited, a not-for-profit disability support provider operating across NSW, Queensland, Victoria and the ACT, signed an Enforceable Undertaking with the Fair Work Ombudsman after back-paying Victorian staff more than $6.5 million, including interest and superannuation. Aruma self-reported in June 2021. Its enterprise agreement had been interpreted incorrectly, and its payroll system could not always apply overtime rates. 1,004 employees were underpaid between July 2017 and April 2021. Most underpayments involved Aruma failing to provide part-time employees with their minimum agreed hours (or pay for them), and failing to apply overtime rates where an employee worked more than six consecutive days of ordinary duty without a 24-hour break.
What was decided
Aruma entered an EU with the FWO and back-paid more than $6.5 million across Victorian operations. The figure is remediation, not a civil penalty. Aruma agreed to a compliance program under the EU.
What it means for employers
Part-time minimum agreed hours clauses mean you must pay those hours even if you did not roster them. Overtime after six consecutive days without a 24-hour break is an often-missed EA clause. Payroll systems must be able to apply these rules automatically, not rely on manual overrides.
What it means for employees
Aruma part-time disability support staff in Victoria between 2017 and 2021 may be owed back-pay for minimum agreed hours not rostered and for overtime on a seventh consecutive day. Aruma is contacting affected staff through its remediation program.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2023-media-releases/october-2023/20231012-aruma-services-eu-media-releaseWant more cases like this?
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This summary was drafted by AI from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →