If you own or operate a business within the disability support sector, now is the time to review your compliance requirements.
Disability service providers are at serious risk of financial penalties and reputational damage as the Fair Work Ombudsman (FWO) launches a sweeping 18-month inquiry into the sector.
This inquiry comes after years of mounting concerns that many disability sector workers, including migrant workers, are not being paid what they are owed under the law.
Over the past five years, the FWO has handled more than 75,000 enquiries, over 2,500 anonymous reports and finalised more than 3,000 matters between 2020 and 2024.
In that time, nearly $68 million in unpaid wages and entitlements was recovered for workers in the disability sector.
Vertruen Chief Operating Officer Kerri Lawrence said the disability services sector was at high-risk for non-compliance and warned providers that failed to act now could be the next to face investigations.
“Too many companies wait until Fair Work is knocking on the door before they look closely at compliance, and by then, it’s too late,” Ms Lawrence said.
“The disability support services sector faces unique pressures that make compliance challenging,” she said.
“High staff turnover, reliance on casual employees, and regulatory changes all increase the risk of errors. Organisations that don’t have strong systems in place for payroll, entitlements and record keeping can quickly find themselves facing fines and investigations.”
The Ombudsman has indicated that its inquiry will examine issues such as worker classification, award compliance and record keeping, and will consider appropriate enforcement action where non-compliance is found. It is seeking to build a culture of compliance where providers ensure minimum wages and conditions are being met.
Vertruen is urging disability service providers to act now, not only to remain compliant, but to keep their skilled staff and protect the quality of care on offer.
“Paying people correctly and honouring their entitlements isn’t optional,” Ms Lawrence said.
“Providers that fail to do so won’t just face penalties; they’ll struggle to attract and retain quality staff who deliver frontline care to some of the most vulnerable people in our community.”
At Vertruen, we work with disability service providers to identify risks, improve payroll and record-keeping systems, and embed best practice before issues escalate. By engaging Vertruen to conduct independent audits, providers can reduce exposure to regulatory action and build confidence with their staff, clients and stakeholders.
