Disability Services Business Operator in Hot Water Again

Author Image Written by Garth Belic

Read up on the FWO’s legal action against a disability services operator for alleged underpayment of employee entitlements. Get tips to avoid the same situation.

It seems like déjà vu for Kreating Real Change Disability Services in Crookwell, NSW. The Fair Work Ombudsman (FWO) has taken legal action against them for the second time, alleging underpayment of employee entitlements. 

What Went Wrong?

According to the FWO, two workers (a married couple) employed the operator in full-time home care positions between June 2020 and September 2022 were allegedly underpaid.

A Fair Work Inspector issued a Compliance Notice to Ms Tate in December 2022, believing that the workers were shortchanged on minimum wages, overtime, annual leave entitlements, public holiday penalty rates, shift loadings, and sleepover allowances.

The kicker? The FWO alleges that they failed to comply with the Compliance Notice, which required her to calculate and back-pay the workers' entitlements to the tune of $13,878. 

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The Consequences

Now, Kreating Real Change Disability Services is facing a penalty of up to $8,250 for allegedly failing to comply with the Compliance Notice.

The FWO is also seeking an order for her to pay the alleged amount owed to the employees, plus superannuation and interest.

This isn't the first time they have found themselves in hot water. In a separate legal action, the Federal Circuit and Family Court imposed a $4,290 penalty against them for failing to comply with a Compliance Notice requiring back payments to two young workers.

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How to Avoid Being in the Same Boat

As an employer, it's imperative you stay on top of your obligations to your employees.

Here are some tips to help you avoid finding yourself in a similar situation:

  1. Know your awards: Familiarise yourself with the relevant awards for your industry, such as the Social, Community, Home Care and Disability Services Industry Award. 
  2. Keep accurate records: Maintain detailed records of your employees' hours worked, pay rates, and entitlements. This will help you stay compliant and make it easier to resolve any disputes that may arise. Alternatively, use a SCHADS-specific solution to keep your payroll compliant.
  3. Communicate with your employees: Regularly discuss pay and entitlements with your staff. Encourage them to come to you with any concerns or questions they may have.
  4. Seek help when needed: If you're unsure about your obligations or need assistance, don't hesitate to reach out to the Fair Work Ombudsman or even our HR help team. 
  5. Take Compliance Notices seriously: If you receive a Compliance Notice, take immediate action to rectify any underpayments and provide the requested information to the FWO.

Remember, the FWO is cracking down on non-compliance in the care sector, so it's more important than ever to get your ducks in a row. 

For more information on awards in your sector, check out our collection of eBooks and guides.

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