Southern Cross Care (WA) signs EU for $5.4m in underpayments

Following Southern Cross Care (NSW and ACT) signing an enforceable undertaking (EU) with the Fair Work Ombudsman last month, the aged care, mental health and disability support services provider’s Western Australian operations have also signed an EU with the ombudsman after it underpaid nearly 2,000 staff nearly $5.4 million, including interest and superannuation.

The underpayments occurred over eight years, between January 2017 and November 2025. Southern Cross Care (WA) has since back paid 1,956 employees $5,382,122, including interest and superannuation. These underpayments ranged from less than a dollar to $95,426, including superannuation and interest, with a median back payment of $546.

The EU commits the provider to provide quarterly updates to the ombudsman on its new HR information system, provide training to relevant workers on workplace relations, including their enterprise agreement entitlements, and regularly report to its Board about compliance and flag any potential breaches.

“The EU commits Southern Cross Care (WA) to establishing several ways for employees to raise their views, including a quarterly Worker Voice Forum to which union representatives will be invited. Feedback from employees will be sought through surveys, and a hotline will run for six months for all current and former employees who can raise issues confidentially if they wish,” the ombudsman added.

“The small amount of outstanding wages owed will be paid into the Commonwealth Consolidated Revenue Fund if the employer can’t find the remainder of the employees within 60 days,” the ombudsman said.

The company provides community care, supported accommodation, residential housing and aged care facilities and services across 13 locations in Perth, Broome and Kalgoorlie, with most of the underpaid workers being based in Perth.

The impacted workers worked in a range of roles such as home care, aged care, registered and enrolled nurses, mental health, and hospitality, including 31 young people under 21 and nearly 400 visa holders, many of whom were also young.

Southern Cross Care (WA) identified these underpayments following an internal review, following an investigation after employees and the union made queries about pay and conditions; it self-reported its non-compliance to the Fair Work Ombudsman in December 2024.

It reported that the root causes of the non-compliance stemmed from incorrectly configured time and attendance systems, payroll systems, and misinterpretation of enterprise agreement provisions.

These employees were underpaid their base rates owed under modern awards underpinning their enterprise agreements.

“They also missed out on the right pay point progression; payment for work during sleepovers; paid meal breaks; overtime; breaks between shifts; various allowances; additional leave for continuous shift workers; annual leave loading and afternoon shift loading,” the ombudsman said.

“They also weren’t appropriately compensated for broken shifts and client cancellations. Casual employees’ minimum engagement requirements were not met,” it added.

Ombudsman Anna Booth said: “The matter serves as a warning of the significant long-running problems that can result from an employer failing to have appropriate checks and balances to ensure workplace compliance. We expect employers to meet their legal obligations under their own enterprise agreements.”