Sydney retirement village to backpay $1.39m, signs EU

Improper IFA arrangements and an incorrect payroll system configuration were identified as the cause of the underpayments by Goodwin Aged Care Services Limited, the victims of which were primarily from a non-English speaking background.

Further to recent data from the Fair Work Ombudsman that revealed six residential aged-care providers and seven home care providers had underpaid workers over $5 million, and 16 compliance notices issued following anonymous complaints and following investigations, the retirement living provider signed an Enforceable Undertaking after underpaying 335 employees.

Goodwin, which offers a span of retirement services, first self-reported underpayments in July 2024, whereby an internal audit discovered individual flexibility arrangements (IFAs) for more than 300 employees did not offer better options compared to the relevant award, and they were further over-reliant on non-financial benefits.

Another 20 employees were determined to have not been paid penalty rates.

All underpayments occurred between July 2018 and March 2025, many of which were exacerbated by extra shifts worked due to the COVID-19 pandemic.

According to the FWO, a majority of the workers were based in the ACT, and included personal care workers, nurses, care managers, catering assistants, cleaners, laundry attendants, chefs, allied health professionals, planning officers, and administrators engaged in casual, part-time or full-time bases.

More than three quarters of the underpaid workers came from non-English speaking backgrounds, and approximately 10 per cent were on visas at the time of underpayment.

In acknowledgement of the significant number of migrant workers employed in the aged care sector, FWO Anna Booth said: “Migrants and visa holders are a priority for the FWO, as they can be vulnerable in the workplace including due to lack of awareness of laws or concerns about speaking up. Importantly, they have the same rights as any other employees in Australia and have protections for their visa if they call out for help.”

Booth added: “The FWO repeats its call to all aged care providers to check their compliance, and to do what Goodwin now has in making sure their payroll systems are fit-for-purpose and that staff are being properly trained to ensure hard-working employees are paid every dollar they’re entitled to.”

As part of the EU, Goodwin will bring in an auditor to verify workplace law compliance and ensure the board rectifies any issues and provides relevant documentation to the FWO. Further, the organisation must ensure workers are kept up to date, including via its workplace consultative committee, and share an underpayment notice on its website.

Booth concluded: “We urge aged care providers to invest in their systems and to undertake their own, regular wage compliance audits, including of IFAs and enterprise agreements - otherwise they potentially face big back-payment bills.”

The FWO recently announced it had recovered an additional $95 million in worker wages in the past financial year.

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