Fair Work Ombudsman
At a glance
- Calvary Administration Pty Ltd
- $2,100,000
- 2800
What happened
Calvary Administration Pty Ltd, formerly Japara Administration Pty Ltd, has back-paid over $2.1 million in underpayments to approximately 2,800 current and former employees. The underpayments occurred between January 2017 and June 2020, impacting workers in Victoria, New South Wales, South Australia, and Tasmania. The errors stemmed from payroll issues, including a failure to apply Sunday penalty rates and underpayments of annual leave loading and parental leave entitlements. Japara Administration self-reported the underpayments to the Fair Work Ombudsman in July 2020. The employees worked in aged care facilities in various roles.
What was decided
Calvary Administration has signed an Enforceable Undertaking (EU) with the Fair Work Ombudsman to rectify the underpayments and prevent future errors. The company has back-paid all affected employees, with back-payments ranging from $1 to $3,613, averaging $751. As part of the EU, Calvary Administration must pay a $120,000 contrition payment, conduct independent audits, provide workplace relations training to staff, and publish notices about the contraventions on its website. The Fair Work Ombudsman deemed the EU appropriate due to the company's cooperation and commitment to correcting the issues. "Under the Enforceable Undertaking, Calvary Administration has committed to implementing stringent measures to ensure its workers are paid correctly."
What it means for employers
Employers must prioritise ensuring accurate payroll systems and compliance with workplace laws, including enterprise agreements. Regular reviews of pay practices and entitlements are essential to avoid underpayments. The case highlights the importance of investing in robust compliance measures and seeking professional advice when needed. Calvary Administration's cooperation and willingness to rectify the situation were key factors in the outcome.
What it means for employees
Employees should be aware of their entitlements and regularly check their payslips for accuracy. If discrepancies are found, they should contact their employer and, if necessary, seek assistance from the Fair Work Ombudsman. The case demonstrates that the Fair Work Ombudsman can enforce compliance and recover underpayments.
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