Millions owed to Sunnyfield disability workers after six years of underpay

SUNNYFIELD disability services provider has a debt of more than $78,000 owing to 134 workers after forking out $5.36 million worth of underpayments to more than 1700 employees.

One worker was found to be owed $23,378, including superannuation and interest, while the average underpayment stood at just over $3,000, and the lowest at $1.

The Australian Fair Work Ombudsman said the organisation had signed an enforceable undertaking after the workers were found to have been underpaid between 2018 and 2024 as a result of failures to progress employees to their correct pay points.

Affected employees included community support workers, service coordinators, team leaders and service managers, in full-time, part-time and casual roles.

Sunnyfield reported the underpayments to the national ombudsman in October, 2024 after an external payroll audit identified compliance issues relating to employee pay point progression.

Its review found that pay point progression requirements under the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award) and an enterprise agreement had been applied inconsistently, leading to underpayments when some employees were not progressed to the correct pay point.

Impacted entitlements included base rates of pay, casual loading, weekend penalties, overtime, shiftwork penalties, annual leave, personal leave, community service leave and public holiday payments.

Sunnyfield is a registered National Disability Insurance Scheme organisation and charity which delivers services such as supported independent living, specialist disability accommodation and lifestyle programs from more than 100 locations across NSW, including shared homes and vocational services throughout the Hunter and Central Coast regions.

In cooperating with the Fair Work Ombudsman, Sunnyfield has committed to a range of measures to ensure ongoing compliance with workplace laws, a statement issued by the watchdog said today (October 13).

They included undertaking two independent audits, enhancing worker voice mechanisms, workplace relations training, and strengthening board oversight of compliance matters.

Fair Work Ombudsman Anna Booth said the enforceable undertaking with Sunnyfield was appropriate because the organisation had self-reported non-compliance, fully cooperated with the investigation, back-paid all employees it was able to find to date, and committed to significant measures to prevent future non-compliance.

"Sunnyfield's underpayments highlight the importance of regular reviews of payroll systems and practices, to make sure employees are receiving all the entitlements they're owed under the relevant award or agreement," Ms Booth said.

"Employers should not assume long-standing payroll practices, including on pay point progression, are compliant. Regular reviews, strong governance and effective oversight are essential.

"We welcome Sunnyfield's commitment to rectifying its non-compliance issues and putting in place measures to ensure employees receive all workplace entitlements in future, including increased avenues for workers to speak up, and better board oversight.

"More broadly, the disability support services sector is a priority for the FWO, given the high number of enquiries, and requests for assistance alleging non-compliance, we receive from employees.

"Our Inquiry into compliance with workplace relations laws by businesses in the Disability Support Services sector, which commenced last year, is assisting the FWO uncover the key drivers of non-compliance."

Sunnyfield has been contacted for comment.