Healthcare Fair Work Case Study
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696
74%
$109,295
(in unpaid entitlements)
193
Case overview
The Fair Work Ombudsman’s National Healthcare and Social Assistance campaign conducted 696 audits across medical, allied health and residential care businesses, including GP clinics, physiotherapy practices, dental services and retirement villages. The investigation found that 74% of businesses were fully compliant with their workplace obligations, while issues involving pay rates, record-keeping and payslips were identified among non-compliant employers.
The campaign resulted in 16 infringement notices, 12 formal cautions and one compliance notice. A total of $109,295 was recovered for 193 workers.
In one case, an optometry business underpaid two casual employees by paying them a flat rate of $20 per hour instead of the applicable award rates of $24.86 on weekdays and $34.81 on Saturdays. The Fair Work Ombudsman issued a compliance notice, and the business rectified $5,770.94 in underpayments.
The campaign highlighted the importance of understanding award requirements, paying employees correctly and maintaining accurate employment records to avoid back-payments, fines and potential legal action.
Case facts
What they should have done
Correctly interpret the applicable award and pay guide, and ensure employees were paid the right rates and entitlements, with accurate records and compliant payslips.
How Happy HR could have helped
Award Interpretation
Pay guide review
HR compliance support
Happy HR ROICountless hours saved on Fair Work and reviewing documents!
Got questions?
Frequently asked questions
What happened in the Healthcare Fair Work case study?
The Fair Work Ombudsman’s National Healthcare and Social Assistance campaign conducted 696 audits across medical, allied health and residential care businesses. While 74% of audited businesses were fully compliant, the investigation identified issues with employee pay rates, record-keeping and payslips. A total of $109,295 was recovered for 193 workers.
Why were some healthcare employees underpaid?
Some businesses failed to correctly interpret and apply the relevant industry awards. In one example, an optometry business paid two casual employees a flat rate of $20 per hour instead of the applicable award rates of $24.86 on weekdays and $34.81 on Saturdays.
What happened to businesses that failed to comply?
The campaign resulted in 16 infringement notices, 12 formal cautions and one compliance notice. Non-compliant businesses risk back-payment obligations, financial penalties and, in serious cases, legal action.
What should healthcare businesses do to avoid Fair Work breaches?
Healthcare businesses should regularly review employee pay rates against applicable awards, ensure penalty rates and other entitlements are correctly applied, and maintain accurate employment records and payslips. Understanding workplace obligations is essential to preventing underpayments and compliance issues.
How could Happy HR help healthcare businesses stay compliant?
Happy HR could help healthcare businesses through award interpretation, pay guide reviews and HR compliance support. These services can help identify pay-rate gaps, improve employment record-keeping and ensure businesses have appropriate HR processes in place to reduce workplace compliance risks.
See how Happy HR helps healthcare businesses stay compliant and reduce HR risks
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