Fair Work Ombudsman
Citation: FWO-2024-05-15-open-minds-australia-eu-media-release
At a glance
- Penalty
- $4,200,000
- Employees affected
- 1507
What happened
Open Minds Australia Limited, a disability support charity, has back-paid approximately $4.2 million to around 1,507 current and former employees for underpayments. The underpayments occurred between July 2015 and July 2021, due to errors in payroll and rostering systems related to a collective agreement. Open Minds became a subsidiary of Multicap Limited in 2021 and self-reported the issues to the Fair Work Ombudsman in June 2021. The affected employees were support workers, residential support workers and case workers across Queensland and northern NSW.
What was decided
The Fair Work Ombudsman secured an Enforceable Undertaking (EU) from Open Minds Australia Limited. This requires Open Minds to implement measures to ensure correct employee payments, including an independent auditor. The charity has already back-paid $3.33 million in entitlements, $170,000 in interest, and $695,000 in salaries under common law contracts. Individual back-payments ranged from small amounts to almost $50,000, with an average of about $2,400 including superannuation and interest. The EU also mandates reporting, a remediation committee, a hotline, and notifications to affected staff.
What it means for employers
Employers must understand and correctly apply the terms of their enterprise agreements. They need to have systems and processes in place to ensure employees receive their full lawful entitlements consistently. Failing to do so can lead to significant back-payments and legal action.
What it means for employees
Employees should be aware of their entitlements under collective agreements and the Fair Work Act. They can seek information and assistance from the Fair Work Ombudsman, their employer, or their union if they believe they have been underpaid.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2024-media-releases/may-2024/20240515-open-minds-australia-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 →