Fair Work Ombudsman
Citation: FWO-2023-09-08-scctas-eu-media-release
At a glance
- Respondent
- Southern Cross Care (Tasmania) Inc
- Penalty
- $6,900,000
What happened
Southern Cross Care (Tasmania) Inc, Tasmania's largest aged care operator, signed an Enforceable Undertaking with the Fair Work Ombudsman and is back-paying staff almost $6.9 million. The not-for-profit self-reported in August 2021 after identifying breaches during an internal review prompted by fundamental errors in its payroll and human resources systems. The errors included failing to have written agreements with part-time staff to work additional hours at ordinary rates, which meant employees were entitled to overtime for those additional hours but were not paid it. The organisation also failed to recognise that shift-workers without written agreements were entitled to be paid from the start of their first shift to the end of their final shift each day, rather than just the hours worked during the separate shifts. Underpayments occurred between 2015 and 2022 across Hobart, Launceston, Somerset and Low Head.
What was decided
Southern Cross Care (Tasmania) entered an EU with the FWO and is back-paying almost $6.9 million. The figure is remediation, not a civil penalty. It agreed to compliance measures covering its Tasmanian operations.
What it means for employers
For part-time staff working additional hours at ordinary rates, you need a written agreement. Without it, the additional hours must be paid at overtime rates. For shift-workers without a written agreement, pay must run from the start of the first shift to the end of the final shift each day, not just the hours actually worked. Missing written agreements are a hidden overtime exposure.
What it means for employees
Southern Cross Care (Tasmania) staff between 2015 and 2022, especially part-time care workers and shift staff without written agreements on additional hours, may be owed overtime back-pay. The organisation is contacting affected staff.
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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