Fair Work Ombudsman
At a glance
- Community Living & Respite Services Inc (CLRS)
- $3,000,000
- 391
What happened
Community Living & Respite Services Inc (CLRS), a disability services provider operating in Echuca and Moama, New South Wales and Victoria, underpaid employees between 2015 and 2021. The underpayments occurred because CLRS failed to correctly implement an Equal Remuneration Order from 2012, which increased minimum wages in the social and disability services sector. CLRS self-reported the non-compliance to the Fair Work Ombudsman in 2021. The affected employees were primarily disability and aged care workers, including full-time, part-time, and casual staff. A total of 391 current and former employees were impacted.
What was decided
CLRS has back-paid employees a total of $3.17 million, including superannuation and goodwill payments. Individual payments ranged from $15 to $34,874. The Fair Work Ombudsman secured an Enforceable Undertaking (EU) from CLRS, noting their cooperation and commitment to rectifying the underpayments. The EU requires CLRS to notify staff of the underpayments, operate an enquiry line, and engage an independent auditor to assess compliance with workplace laws. The Fair Work Ombudsman emphasised the importance of employers staying informed about workplace laws.
What it means for employers
Employers must ensure they are fully compliant with workplace laws, particularly when there are changes like the Equal Remuneration Order. Regularly review and update compliance processes to avoid underpayments and potential penalties. Seeking free advice and assistance from the Fair Work Ombudsman is recommended.
What it means for employees
Employees should be aware of their workplace entitlements and report any suspected underpayments to the Fair Work Ombudsman. The Fair Work Ombudsman provides free advice and assistance to both employers and employees.
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