Goodwin Aged Care self-reported the underpayments to the Fair Work Ombudsman. Photo: Screenshot/Google Maps.
Goodwin Aged Care has paid back $1.39 million to 335 employees after it found its workers had been underpaid.
The aged care provider operates five residences in Canberra, as well as one each in Queanbeyan and Batemans Bay.
According to the Fair Work Ombudsman (FWO), the majority of the underpaid workers were based in the ACT, with more than 75 per cent of them from a non-English speaking background and 10 per cent on visas.
Individual back-payments averaged $4165, and ranged from $38,760 for one worker down to $2.
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,” she said.
“Importantly, they have the same rights as any other employees in Australia and have protections for their visa if they call out for help.”
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 its compliance found that individual flexibility arrangements (IFAs) in place for 313 employees didn’t meet the better-off-overall test (when compared to their award or registered agreement) and were over-reliant on non-monetary benefits.
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. Some worked full-time, while others were engaged on a casual or part-time basis.
The employees were underpaid between July 2018 and March 2025. Underpayments for early afternoon shifts were especially exacerbated during COVID-19.
“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,” Ms Booth said.
“Otherwise they potentially face big back-payment bills.”
Along with paying back the money (which includes superannuation and interest) Goodwin has signed an enforceable undertaking with the FWO.
It now must engage an auditor to verify its compliance with workplace laws, 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.
In a statement, Goodwin Aged Care Services said it sincerely regretted the errors and apologised to all affected current and former employees.
“Goodwin takes its obligations to employees seriously and remains committed to compliant payroll practices, transparency and continuous improvement across its systems and processes,” it said.
“This is not a new matter and the Enforceable Undertaking does not identify any additional underpayment issues beyond those previously communicated to employees.”
The money for those employees who could not be contacted or repaid has been transferred to the FWO.
Employers and employees can visit Fair Work or call 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.
