[Australia] Payroll errors cost not-for-profit millions

In Australia, the not-for-profit, Southern Cross Care (NSW & ACT), has entered an Enforceable Undertaking with the Fair Work Ombudsman from April 2 to rectify more than $11.7 million in underpayments, including interest and superannuation, to 5,500 staff, The Weekly Source reports.

When Southern Cross Care (NSW & ACT) self-audited in 2023, they discovered underpayments to staff worth millions of dollars. It reported the non-compliance to the Fair Work Ombudsman within months.

The errors were caused by the operator’s time and attendance system and a manual payroll process, which was inconsistent with enterprise agreement requirements.

Employees were reportedly underpaid overtime, weekend penalties, shift loadings and annual leave loading, together with other entitlements owed under the enterprise agreements. The underpayments occurred during the period from July 2017 to October 2024.

Affected workers included home care employees, nursing assistants, registered and enrolled nurses, facility managers, diversional therapists, cooks and handypersons. This included staff employed on a casual, full-time and part-time basis.

Southern Cross Care (NSW & ACT) has back-paid 3,603 employees a total of $10,135,122 to date, including interest and superannuation.

Back-payments to underpaid individual employees reportedly range from less than a dollar to $44,593, including superannuation and interest. The average back-payment was $1,716.

If employees cannot be found within 60 days, the outstanding amounts will be paid into the Commonwealth Consolidated Revenue Fund.

Source: The Weekly Source

In Australia, the not-for-profit, Southern Cross Care (NSW & ACT), has entered an Enforceable Undertaking with the Fair Work Ombudsman from April 2 to rectify more than $11.7 million in underpayments, including interest and superannuation, to 5,500 staff, The Weekly Source reports.

When Southern Cross Care (NSW & ACT) self-audited in 2023, they discovered underpayments to staff worth millions of dollars. It reported the non-compliance to the Fair Work Ombudsman within months.

The errors were caused by the operator’s time and attendance system and a manual payroll process, which was inconsistent with enterprise agreement requirements.

Employees were reportedly underpaid overtime, weekend penalties, shift loadings and annual leave loading, together with other entitlements owed under the enterprise agreements. The underpayments occurred during the period from July 2017 to October 2024.

Affected workers included home care employees, nursing assistants, registered and enrolled nurses, facility managers, diversional therapists, cooks and handypersons. This included staff employed on a casual, full-time and part-time basis.

Southern Cross Care (NSW & ACT) has back-paid 3,603 employees a total of $10,135,122 to date, including interest and superannuation.

Back-payments to underpaid individual employees reportedly range from less than a dollar to $44,593, including superannuation and interest. The average back-payment was $1,716.

If employees cannot be found within 60 days, the outstanding amounts will be paid into the Commonwealth Consolidated Revenue Fund.

Source: The Weekly Source