More than $5.3 million in unpaid wages has been recovered for almost 3,600 aged care workers following investigations by the Fair Work Ombudsman (FWO).
The average underpayment of direct care workers, including personal care workers, enrolled nurses, registered nurses and assistants in nursing, was $1,478.
Of the 22 aged care businesses providing residential and home care services investigated by the FWO, 13 were found to have breached workplace laws in one or more areas.
All 13 employers had underpaid staff. Six residential aged care providers repaid more than $2.17 million to 2,338 employees, while seven home care providers repaid more than $3.13 million to 1,253 employees.
The FWO investigated providers in Victoria, New South Wales, South Australia, Queensland and Western Australia between February 2025 and May 2026. Many of the businesses operated across multiple states, with investigations covering both metropolitan and regional areas.
The back-payments were made after the FWO issued 16 Compliance Notices to the 13 employers.
The most common breaches involved underpayment of minimum rates of pay, underpayment or non-payment of broken shift entitlements, failure to pay minimum engagement periods, and underpayment of overtime.
Other contraventions involved breaching record-keeping and payslip requirements and not providing a Fair Work Information Statement to all employees. One provider also advertised below-minimum rates of pay.
The investigations sent a message that aged care providers needed to strengthen their compliance to ensure they pay their employees all they are owed, said Fair Work Ombudsman Anna Booth.
“Aged care providers need to make sure their payroll systems are fit for purpose, and payroll staff are properly trained to make sure employees are paid every dollar they are entitled to.
“The FWO calls on aged care providers to invest in strengthening their payroll and rostering systems and to undertake their own, regular wage compliance audits – or potentially face big back-pay bills.”
Leading causes of breaches were the incorrect classification of employees, calculation of overtime, application of broken shifts and payment of minimum engagement periods.
The investigations were conducted alongside the FWO’s collaboration with members of its Aged Care Services Reference Group, a tripartite initiative combining employer bodies and unions, to promote and enhance compliance with workplace laws across the sector.
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance on workplace rights and obligations. A free interpreter service is available on 13 14 50.
More information:
- Read the Aged Care Services Sector Investigation Report here
- Understanding the Aged Care Award – Fair Work Ombudsman
- Anonymous reporting – Fair Work Ombudsman
- Visa holders and migrants – Fair Work Ombudsman
