Apr 07, 2025

20 aged care providers are under investigation for underpaying staff

20 aged care providers are under investigation for underpaying staff
The FWO is inspecting 20 providers after uncovering millions in unpaid wages. [Grok]

The Fair Work Ombudsman (FWO) has launched an investigation into 20 aged care providers across five states, aiming to ensure that staff receive their rightful pay and entitlements.

This follows alarming findings from the previous financial year, during which the FWO recovered over $40.5 million in unpaid wages for more than 22,000 aged care workers.

These latest investigations, which began in late February 2025 and are set to continue through March, include a range of residential aged care facilities, home care providers, and digital platforms that connect workers with care recipients.

The targeted organisations are located in Victoria, New South Wales, South Australia, Queensland, and Western Australia.

FWO Anna Booth told HR Leader that the primary focus of these inspections is to assess wages, entitlements, and record-keeping for personal care workers, nurses, and nursing assistants. Booth highlighted that aged care employs a large number of vulnerable workers, particularly migrants, who are at greater risk of exploitation.

“Aged care workers play a vital role in our communities and must be paid all that they are owed under their awards, agreements, and the Fair Work Act’s National Employment Standards,” Booth stated.

“Where breaches are identified, our priority is to ensure workers receive full and prompt back payment. If significant compliance issues are uncovered, we will consider enforcement measures.”

The organisations under scrutiny were selected based on various risk factors, including previous non-compliance with workplace laws. Common issues within the sector include underpayment of base wages, failure to pay overtime and penalty rates, non-payment of allowances, and withholding final entitlements when workers leave their roles.

To address the systemic issues within the sector, the FWO has established an Aged Care Services Reference Group, bringing together key stakeholders such as Ageing Australia, the Health Services Union, the Australian Nursing and Midwifery Federation, and the United Workers Union.

This initiative aims to foster a collective approach to compliance and ensure that workplace laws are upheld.

Booth has also reiterated the FWO’s commitment to assisting both employers and employees in understanding their obligations and rights. Resources such as the online Pay and Conditions Tool and Fair Work Ombudsman helpline are available to support correct wage payments and workplace compliance.

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  1. If any changes check all the private institutions allows people from African countries to working in the NDIS program through study and work visa is a exploitation and duplicated.

  2. Why aren’t these 20 Aged Care Providers named, so we can avoid considering them for our loved ones.

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