Fair Work Ombudsman
Citation: FWO-2022-12-14-rsl-lifecare-eu-media-release
At a glance
- Respondent
- RSL LifeCare
- Penalty
- $5,000,000
- Employees affected
- 3591
What happened
RSL LifeCare, a not-for-profit aged and veteran services organisation affiliated with RSL NSW, self-reported payroll errors to the Fair Work Ombudsman (FWO) in 2021. These errors occurred during a transition to a new human resources and payroll system. Between 2010 and 2021, over 3,591 current and former employees in NSW and the ACT, including full-time, part-time, and casual staff in nursing and management roles, were underpaid. The underpayments stemmed from incorrect system setup and pay rules, impacting entitlements outlined in enterprise agreements. RSL LifeCare has back-paid more than $5.1 million.
What was decided
RSL LifeCare has entered into an Enforceable Undertaking (EU) with the FWO after self-reporting payroll errors. The organisation has back-paid over $5.1 million to affected employees. The EU requires RSL LifeCare to implement stringent measures to ensure future compliance, including audits, a hotline for employee inquiries, and workplace relations training. The FWO considered the organisation's cooperation and commitment to rectifying the underpayments when deciding on the EU. The EU mandates rectification of remaining underpayments by April 2023.
What it means for employers
Employers must prioritise workplace obligations and ensure their systems and processes support full compliance with workplace laws. RSL LifeCare’s experience highlights the importance of robust payroll and rostering systems and regular audits to prevent long-term breaches of enterprise agreements. Seeking assistance from the FWO is recommended for employers needing help meeting their obligations.
What it means for employees
Current and former employees of RSL LifeCare who believe they were underpaid should review their pay records. The Enforceable Undertaking ensures that outstanding entitlements will be addressed. Employees can contact the FWO for information and assistance regarding their workplace rights.
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This summary was drafted 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