Disability support provider Yooralla agrees to $2 million back pay deal with workers

More than 1,300 staff at disability service provider Yooralla will receive a combined $2.05 million in back pay, the Fair Work Ombudsman confirmed. The not-for-profit organization, operating in Melbourne and regional Victoria, entered into an enforceable undertaking after rectifying mass underpayments to 1,389 current and former employees. The amounts ranged from less than $1 to over $22,000.

Most affected were casual disability support workers in Melbourne, with the underpayment period spanning from March 2018 to March 2024. On average, staff received about $1,470 in back payments. Fair Work Ombudsman Anna Booth welcomed Yooralla's cooperation but issued a warning to all employers about the significant consequences of not prioritizing compliance with minimum pay laws.

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The matter serves as a warning of the significant long-running problems that can result from an employer not prioritising compliance with minimum pay laws.

Yooralla became aware of the issue after a casual employee queried their shift loading entitlement. This prompted a comprehensive review, including an external consultant, leading the organization to self-report the non-compliance in 2024. Health and Community Services state secretary Paul Healey acknowledged Yooralla's proactive approach, noting it was a rare case where an employer recognized and self-disclosed underpayments, fostering a collaborative resolution with the union and employees.

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It's one of those rare cases where the employer recognised the underpayment and self disclosed.