FWO targets 20 aged-care providers with underpayment investigations

The Fair Work Ombudsman is investigating aged-care organisations across five states, ensuring workers receive the correct pay and entitlements.

In 2023–24, the Fair Work Ombudsman (FWO) recovered over $40.5 million for over 22,000 underpaid aged-care workers spread across the residential aged-care sector, with 12 per cent of all the anonymous reports to the regulator being made by workers providing healthcare and social assistance.

These alarming statistics have led to a crackdown by the FWO in 2025, with 20 organisations being inspected via interviews with staff and management residing at each company. The organisations were a mix of residential aged-care providers, home-care organisations, and digital platforms that provide home-care workers.

These 20 organisations are based in Victoria, NSW, South Australia, Queensland, and Western Australia, with visits beginning in late February and continuing through March.

According to FWO Anna Booth, the investigations focus on pay and entitlements for personal care workers, nurses, and nursing assistants, with each organisation’s record-keeping also being assessed.

“The aged-care sector employs a high number of vulnerable workers, particularly migrant workers, who are at risk of exploitation, and these inspections are making sure their workplace rights are being met,” Booth said.

“Hard-working aged-care workers must be paid all that they are owed under their awards, agreements, and the Fair Work Act’s National Employment Standards. If we find breaches, our first aim is to ensure that workers are fully and promptly back paid. If we find employers with significant compliance issues, we will consider our enforcement tools as appropriate.”

The FWO claimed that organisations were selected for inspection after reviewing multiple factors, which included previous non-compliance with the Fair Work Act.

“We want employers to get it right in the first place. The Fair Work Ombudsman supports employers and employees to identify correct pay and entitlements.”

“The FWO provides tools and resources such as an up-to-date online Pay and Conditions Tool, our phone line, and a range of other information online at fairwork.gov.au so that employees know they are being paid correctly and employers can ensure they are compliant,” Booth said.

Some of the common issues that have arisen around underpayments for aged-care workers have been underpayment of base rates of pay; non-payment for overtime and penalty rates; non-payment of allowances; and non-payment of final entitlements upon leaving their employment.

Due to the immense issues that have accumulated across the sector, the FWO has established an Aged Care Services Reference Group to support a “collective approach to enhanced compliance with workplace laws”.

This group is composed of senior FWO leaders, Ageing Australia, the Health Services Union, the Australian Nursing and Midwifery Federation, and the United Workers Union.

“Improving compliance in this sector requires commitment from all stakeholders, and we look forward to working with Reference Group members,” Booth said.