Some underpayments come from deliberate corner-cutting. Many more come from something far more mundane: a payroll setting nobody checked for years. The latest example is NSW disability services charity Sunnyfield, which has signed an Enforceable Undertaking with the Fair Work Ombudsman after underpaying 1,767 workers about $5.43 million.

What went wrong

Sunnyfield is an NDIS-registered charity providing supported independent living, specialist disability accommodation and lifestyle programs across NSW.

Between 2018 and 2024 it failed to move employees to the correct pay points. Its review found it had not consistently applied the progression rules in the Social, Community, Home Care and Disability Services Industry Award 2010 (the SCHADS Award) and its enterpriseagreement — so some staff stayed on a lower pay point than they were entitled to.

 Because base pay drives almost everything else, the error flowed through to:

● base rates of pay and casual loading

● weekend, shiftwork and public holiday payments

● overtime

● annual leave, personal leave and community service leave

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

By the numbers

How it came to light

Sunnyfield found the problem itself. An external audit of its payroll flagged issues with pay point progression, and the organisation self-reported to the FWO in October 2024.

What the undertaking requires

Under the Enforceable Undertaking, Sunnyfield has committed to:

● two independent audits of its compliance

● better channels for workers to raise concerns

● workplace relations training

● stronger board oversight of compliance

Why an undertaking, not court?

Fair Work Ombudsman Anna Booth said an Enforceable Undertaking was appropriate because Sunnyfield self-reported, cooperated fully, back-paid every employee it had located, and committed to significant steps to prevent a repeat. Her broader warning to employers was pointed: don't assume long-standing payroll practices

— including how staff progress through pay points — are compliant. Regular reviews, strong

governance and effective oversight are essential.

A priority sector

The FWO treats disability support services as a priority because of the high volume of enquiries and requests for assistance it receives from workers in the sector. Its inquiry into compliance across disability support services is helping it identify the key drivers of non- compliance.Sunnyfield's case shows one of them clearly: complex award classification and progression rules applied inconsistently over many years.

Lessons for employers

Pay point progression is a common blind spot-Under awards like SCHADS, employees move up pay points based on service, skills or qualifications. If your payroll doesn't trigger those moves automatically, people get left behind.

Small errors compound- An average shortfall of about $3,000 per worker looks modest —until it's multiplied across nearly 1,800 staff and six years.Audit before the regulator does. Sunnyfield's external audit let it self-report and resolve theissue through an undertaking rather than litigation

Boards own compliance – The undertaking focus on board oversight reflects the;s expectation that underpayment risk is a governance issue, not just a payroll one. Find former staff. Back-pay obligations don't end when people leave. Keep records thatmake it possible to locate and pay former employees.

For workers

If you work in disability support and aren;t sure you're on the right pay point, check yourclassification against the SCHADS Award or your enterprise agreement. Former Sunnyfield employees who think they may be owed money should get in touch with Sunnyfield. The Fair

Work Infoline is on 13 13 94, with an interpreter service on 13 14 50.

Source: Fair Work Ombudsman media release, 14 October 2026, as reported by OnNotice.

This post is general information, not legal advice.