Goodwin Aged Care Services signs EU after $1.39m underpayments
Goodwin Aged Care Services Limited (Goodwin) has signed an Enforceable Undertaking (EU) with the Fair Work Ombudsman after underpaying 335 employees, with completed back-payments of more than $1.39 million including interest and superannuation.
Individual back-payments by Goodwin, an aged care provider operating in the ACT and NSW, ranged from $38,760 for one worker down to $2, with an average of $4,165.
The large majority of underpaid workers were based in the ACT. More than 75 per cent of the underpaid workers were from a non-English speaking background and 10 per cent were visa-holders.
Goodwin, a registered charity which provides retirement living, residential aged care, home care and allied health services, self-reported underpayments to the FWO in July 2024.
An internal audit of the company’s compliance found that individual flexibility arrangements (IFAs) in place for 313 employees did not meet the better-off-overall test and were over-reliant on non-monetary benefits. An IFA must leave an employee better off overall when compared to their award or registered agreement.
Incorrect payroll system configuration meant an additional 22 residential care employees (not on IFAs) had not been paid owed penalty rates for early afternoon shifts.
Affected employees included personal care workers, nurses, care managers, catering assistants, cleaners, laundry attendants, chefs, allied health professionals, planning officers and administrators. They were variously engaged on casual, part-time or full-time bases.
Fair Work Ombudsman Anna Booth said the aged care sector employed a significant number of migrant workers.
“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,” Ms Booth said.
“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.
“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 employees were underpaid between July 2018 and March 2025, with underpayments for early afternoon shifts exacerbated during the Covid-19 pandemic, when staff worked that shift more than usual.
Under the terms of the EU, Goodwin must engage an auditor to verify its compliance with workplace laws, and make sure its board takes actions to rectify any issues and provide relevant documentation to the FWO.
The organisation must maintain communication with workers, including via its workplace consultative committee, and put a notice on its website about the underpayments.
The FWO’s recent investigations of 22 providers of residential aged care and home care, headquartered in NSW, Victoria, SA, Queensland and WA, recovered more than $5.3 million for nearly 3,600 underpaid direct care workers.
The FWO is currently auditing 30 aged care providers to test compliance with the Fair Work Act for cleaning and catering employees. The regulator’s proactive investigations of these employers will look at payslips, record-keeping and pay rates. Investigations are continuing.
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their workplace rights and obligations. A free interpreter service is available on 13 14 50.
Employees can also seek assistance from their employers, or their union if they are a member. Workplace issues can be reported online anonymously, including in languages other than English.
Employers can find tools and resources on our website to assist in their compliance with the Fair Work Act, including the ‘Use of Individual Flexibility Arrangements – Best Practice Guide’ and a Pay Calculator.
