Canberra-based Goodwin Aged Care Services Limited has back-paid staff more than $1.39 million in wages, superannuation and interest after 335 employees were underpaid between 2018 and 2025.
One worker received $38,760 in arrears and the charity has signed an enforceable undertaking with the Fair Work Ombudsman in the wake of the underpayments.
Fair Work Ombudsman Anna Booth said most of the underpaid staff worked in Goodwin's Canberra operations and more than 75 per cent were from non-English speaking backgrounds. They included personal care workers, nurses, care managers, catering assistants, cleaners, laundry attendants, chefs, allied health professionals, planning officers and administrators.
"Migrants and visa holders are a priority for the Fair Work Ombudsman, as they can be vulnerable in the workplace including due to lack of awareness of laws or concerns about speaking up,'' Ms Booth 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, which has been providing aged care services in Canberra since the 1950s, self-reported underpayments to the ombudsman in July 2024.
An internal audit found that individual flexibility arrangements in place for 313 employees did not meet the "better-off-overall test". The test requires that an employee be better off overall when compared to their award or registered agreement.
Payroll problems led to an additional 22 residential care employees missing out on penalty rates for early afternoon shifts.
A Goodwin Aged Care Services spokesperson said the organisation had acted promptly to understand the full extent of the underpayments and support affected employees.
"Goodwin engaged independent external forensic accounting and legal specialists to undertake a comprehensive review, identify affected current and former employees, and calculate the amounts owed," the spokesperson said.
"Goodwin sincerely regrets these errors and apologises 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."
Goodwin's services include retirement living in Ainslie, Crace, Downer Farrer, Fisher, Monash and Batemans Bay, and residential aged care facilities in Ainslie, Farrer, Monash and Bateman's Bay. It also provides home care and allied health care services.
Under the enforceable undertaking, Goodwin must engage an auditor to verify its compliance with workplace laws, ensure its board takes actions to rectify any issues and provide relevant documentation to the ombudsman.
It must also maintain communication with workers, including via its workplace consultative committee, and put a notice on its website about the underpayments.
Recent Fair Work Ombudsman investigations of 22 providers of residential aged care and home care, headquartered in NSW, Victoria, South Australia, Queensland and Australia, recovered more than $5.3 million for nearly 3600 underpaid direct care workers.
"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," Ms Booth said.
