Goodwin Aged Care Services to repay $1.39 million after employee underpayments

Australian aged care provider Goodwin Aged Care Services has signed an enforceable undertaking with the Fair Work Ombudsman after 335 employees were underpaid more than $1.39 million over almost seven years.

Goodwin has completed back-payments to the affected workers, including interest and superannuation, following an internal audit that identified multiple payroll and workplace agreement issues. The Canberra-based organisation operates aged care and retirement services in the Australian Capital Territory and New South Wales. Individual payments ranged from $2 to $38,760, with an average repayment of $4,165. More than three-quarters of the affected employees were from non-English-speaking backgrounds, while about 10 per cent were visa holders. Most of the workers were based in the ACT.

Internal audit uncovered underpayments

Goodwin reported the underpayments to the Fair Work Ombudsman (FWO) in July 2024 after an internal compliance review. The audit found that individual flexibility arrangements (IFAs) covering 313 employees did not satisfy the better-off-overall test and placed excessive reliance on non-monetary benefits. Under Australian workplace law, an IFA must leave an employee better off overall than they would be under the relevant award or registered agreement. The audit also identified a separate payroll problem affecting 22 residential care employees. An incorrect payroll system configuration resulted in employees not receiving penalty rates for early-afternoon shifts. The affected workforce included personal care workers, nurses, care managers, catering assistants, cleaners, laundry attendants, chefs, allied health professionals, planning officers and administrative staff. The workers were employed on casual, part-time and full-time arrangements. Fair Work Ombudsman urges aged care providers to review payroll systems

Fair Work Ombudsman Anna Booth said migrant workers were an important part of Australia’s aged care workforce and could face particular workplace vulnerabilities. “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,” Ms Booth said. She said visa holders had the same workplace rights as other employees in Australia and were protected if they sought assistance over workplace issues. The FWO has urged aged care providers to review their payroll systems, train staff responsible for workplace payments and conduct regular wage compliance audits. The regulator said audits should include individual flexibility arrangements and enterprise agreements.

Underpayments occurred between 2018 and 2025

The underpayments occurred between July 2018 and March 2025. The problem involving early-afternoon shift penalty rates was exacerbated during the COVID-19 pandemic, when staff worked those shifts more frequently. Under the enforceable undertaking, Goodwin must appoint an independent auditor to assess its compliance with workplace laws. The organisation’s board must also take steps to address any identified compliance issues and provide relevant documentation to the Fair Work Ombudsman. Goodwin is required to maintain communication with its workers, including through its workplace consultative committee, and publish a notice about the underpayments on its website.

Wider aged care compliance investigation

The Fair Work Ombudsman said recent investigations involving 22 residential aged care and home care providers across New South Wales, Victoria, South Australia, Queensland and Western Australia recovered more than $5.3 million for almost 3,600 underpaid direct care workers. The regulator is also auditing 30 aged care providers to assess compliance with the Fair Work Act for cleaning and catering employees. The ongoing investigations are examining employee payslips, record-keeping practices and pay rates.

Source: Fair Work/Media