Tasmania’s Southern Cross Care, the state’s largest aged care provider, has agreed to reimburse staff almost $6.9 million after discovering a significant underpayment during an internal review.
In August 2021, SCC self-reported the issue to the Fair Work Ombudsman after identifying discrepancies in its payroll and human resources systems.
1,708 affected current and former employees are set to be back-paid a total of $6.87 million.
Individual payments vary, ranging from over $220,000 to less than $1, with an average back-payment of just over $4,000.
The underpayments occurred between 2015 and 2022 and affected staff across various roles around the state, including aged care workers, nurses, community care workers, cleaners and maintenance staff.
SCC has signed an Enforceable Undertaking with the Fair Work Ombudsman, committing to implementing measures to ensure correct payment of workers and commissioning three annual independent audits at its own cost for compliance.
Acting Chair Judith Fishlock said she apologises for the payment blunder.
“On behalf of Southern Cross Care, I would like apologise to staff, both current and former for this underpayment,” Ms Fishlock said.
“Since finalising the review, we have back-paid all current employees and as many former employees we were able to contact their full entitlements, including superannuation and interest.”
The Enforceable Undertaking stipulates that all affected workers must be back-paid by the end of September.
SCC has faced public pressure recently, with the resignation of its CEO and chairman.
