Not so Sunnyfield: Disability organisation signs EU for $5m in underpayments
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More than 1,700 employees of a disability services provider have been affected by an inconsistently applied pay point progression and enterprise agreement that resulted in $5.43 million in underpayments.
The enforceable undertaking, entered into with the Fair Work Ombudsman, dictates two independent audits, enhanced worker voice mechanisms, workplace relations training, and strengthened compliance oversight measures, in addition to all necessary back payments.
Community support workers, service coordinators, team leaders and service managers across full-time, part-time and casual positions were affected by the miscalculation, with most already back paid their missing wages.
Sunnyfield is a registered NDIS provider and charity specialising in supported independent living, disability accommodation and lifestyle programs.
The underpayments were first self-reported to the ombudsman in October 2024 after the organisation undertook an external payroll audit that found pay point progression compliance issues as it related to the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award) and a relevant enterprise agreement.
Entitlements were miscalculated between 2018 and 2019, and affected base rates of pay, casual loading, weekend penalties, overtime, shiftwork penalties, annual leave, personal leave, community service leave and public holiday rates.
Underpayments ranged from $23,378 and $1, with the average underpayment being just over $3,000.
Only a small portion of the $5.43 million have yet been paid, approximately $78.500 to 134 former employees that have not been located.
FWO Anna Booth noted that the incident should reinforce the importance of regular payroll system reviews.
She said: “Employers should not assume longstanding payroll practices, including on pay point progression, are compliant. Regular reviews, strong governance and effective oversight are essential.”
Booth also praised Sunnyfield’s self-reporting of non-compliance, as well as the organisation’s “commitment to rectifying its non-compliance issues and putting in place measures to ensure employees receive all workplace entitlements in future, including increased avenues for workers to speak up, and better broad oversight.”
She added: “The disability support services sector is a priority for the FWO, given the high number of enquiries, and requests for assistance alleging non-compliance, we receive from employees.”
RELATED TERMS
Compliance often refers to a company's and its workers' adherence to corporate rules, laws, and codes of conduct.
In the context of health experience, the International Classification of Functioning, Disability and Health (ICF) defines disability as an umbrella term for impairments, activity limitations and participation restrictions. It denotes the negative aspects of the interaction between an individual (with a health condition) and that individual's contextual factors (environment and personal factors).
An employee is a person who has signed a contract with a company to provide services in exchange for pay or benefits. Employees vary from other employees like contractors in that their employer has the legal authority to set their working conditions, hours, and working practises.
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