Fair Work Ombudsman pursues providers over alleged wage shortfalls

The Fair Work Ombudsman has commenced legal proceedings against Queensland-based disability support provider Agape Reablement and Support Services NSW Pty Ltd, along with its sole director, Rowell Ian Mammah Llorente, over alleged underpayments to two disability support workers.

The action follows complaints from two Agape employees, one engaged on a casual basis and the other on a full-time basis, who sought assistance from the regulator. The FWO issued a Compliance Notice to Agape in October 2024 after investigations indicated that both workers had been underpaid during their employment between November 2023 and May 2024.

According to the FWO, the alleged underpayments related to:

• the full-time employee’s annual leave entitlements under the National Employment Standards; and
• the casual worker’s minimum hourly rate and travelling, transport and fare allowances under the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award).

The Compliance Notice required Agape to calculate and rectify the underpayments. The total amount alleged to be owing was $7789.42, including $4936.85 to the casual employee and $2852.57 to the full‑time worker.

The FWO alleges that Agape failed to comply with the Notice without reasonable excuse and further alleges that Mr Llorente was involved in the contravention.

As a result, the FWO is seeking penalties for non‑compliance. Maximum penalties are currently:

• up to $99,000 for a small business employer and up to $495,000 for other employers; and
• up to $19,800 for individuals involved in contraventions.

The FWO is also seeking orders requiring Agape to comply with the original Compliance Notice, including payment of the alleged outstanding entitlements, plus superannuation and interest.

The matter is listed for directions in the Federal Circuit and Family Court in Brisbane on 15 May 2026.

While the value of the alleged underpayments is modest, the proceedings serve as a reminder that disability support providers face heightened regulatory scrutiny. Even low‑value claims can escalate quickly when compliance notices are ignored, or when payroll systems fail to detect basic Award entitlements.

The matter also reflects broader scrutiny of employment practices within the disability support sector. The SCHADS Award remains one of the more complex modern awards due to its broad coverage. With recent amendments and FWO’s national Disability Support Services Sector Inquiry, there continues to be a focus on systemic compliance payroll and rostering issues exposing employers across the sector.

Fair Work Ombudsman Anna Booth has emphasised that improving compliance across the disability support sector remains a priority, urging employers to take proactive steps to ensure their obligations are being met.

For providers operating in the disability sector, robust payroll governance is no longer optional, it is an essential compliance control. Payroll systems are a common risk area, and regular payroll audits, internal checks and system updates can mitigate the risk of inadvertent breaches and can help avoid costly enforcement action. 

It’s also critical that organisations understand how the SCHADS Award applies in practice to their workforce, including with respect to traveling time, broken shifts and minimum engagement periods. Misapplication of these provisions is a frequent source of non-compliance.

The FWO has also taken compliance action against community services provider Uniting Communities Incorporated (UC), which operates 65 sites across South Australia. 

UC has entered an Enforceable Undertaking (EU) with the FWO after identifying and self-reporting widespread underpayments to current and former employees spanning November 2015 to December 2025.

Under the EU, UC will return more than $2.6 million, inclusive of superannuation and interest, to approximately 1500 affected employees. While UC has already rectified most of the identified underpayments, the FWO’s investigation into the extent and causes of the non-compliance is ongoing. 

Initial findings indicate several root causes, including:

• misapplication of the organisation’s enterprise agreement by the payroll team;
• failure to apply annual wage increases required under the enterprise agreement; and
• payroll system and process deficiencies. 

The issues were first detected when several managers queried their entitlements under the applicable enterprise agreement. UC subsequently reviewed its payroll system, confirmed its non-compliance and initiated a comprehensive internal review and remediation program. The organisation self-reported these issues to the FWO in May 2023.

As part of the EU, UC has committed to a series of undertakings designed to improve governance and prevent recurrence. These include:

• demonstrating to the FWO the corrective actions taken to strengthen payroll systems and the training provided to relevant staff;
• establishing a dedicated hotline for employees to raise questions about their entitlements;
• implementing a formalised complaints and review process to ensure timely resolution of concerns;
• communicating the terms of the EU to all staff; and
• commissioning at least two independent audits at its own expense. 

Fair Work Ombudsman Anna Booth commended UC for its cooperation throughout the investigation and for its commitment to rectifying the underpayments and strengthening its compliance framework.

The EU reflects how complex payroll compliance can be for large employers, particularly where multiple enterprise agreements apply across diverse services and locations. 

Employers should ensure enterprise agreements are correctly interpreted and applied, payroll system are regularly audited, and potential issues are identified early. Where underpayments are identified, proactive engagement with the FWO and prompt remediation will assist in mitigating enforcement outcomes. 

Regular and robust compliance checks remain essential.