On 8 July 2026, the Fair Work Ombudsman commenced legal action against G8 Education Limited, one of Australia’s largest for-profit childcare and early learning operators, alleging underpayments and seeking more than $2 million in combined underpayments and compensation for over 1,400 workers.

The Fair Work Ombudsman is seeking declarations, penalties, and orders for any outstanding amounts to be paid to the affected employees.

What Is Alleged

In the Federal Court proceedings, the Fair Work Ombudsman alleges that G8 Education:

• Underpaid employees’ minimum rates and overtime entitlements under the Children’s Services Award 2010 (approximately $1.03 million)
• Underpaid some employees engaged as trainees
• Failed to pay a first aid allowance to some employees
• Entered into Individual Flexibility Arrangements (IFAs) with hundreds of childcare workers that did not leave them better off overall

The IFAs allegedly increased the number of ordinary hours that could be worked in a day from 8 to 10 without attracting overtime. The Fair Work Ombudsman alleges there was no monetary benefit to the workers, and any non-monetary benefits were not sufficient to meet the “better off overall” test. Compensation sought for these IFA-related losses is approximately $1.045 million.

The alleged contraventions occurred between June 2020 and July 2022. Affected workers included children’s services employees and support workers across G8’s centres, including some junior employees under 20.

Why This Case Matters

Fair Work Ombudsman Anna Booth described the alleged conduct as “completely unacceptable,” particularly for a large, well-resourced corporate employer.

She emphasised two key points:

• Large employers must place a higher priority on ensuring staff receive their lawful minimum entitlements.
• Any Individual Flexibility Arrangement must leave employees better off overall — this is a fundamental legal requirement.

G8 Education faces penalties of up to $66,600 per contravention. Individual underpayment amounts being sought range from approximately $50 to more than $15,000, while IFA-related compensation claims range from about $100 to more than $6,000.

Key Lessons for Childcare and Early Learning Providers

• Correct Award rates and overtimeunder the Children’s Services Award must be applied accurately.
• Trainee rates and first aid allowancesare specific entitlements that are frequently overlooked.
• Individual Flexibility Arrangementsmust genuinely leave employees better off overall. Simply extending ordinary hours without overtime is unlikely to meet this test unless clear monetary or other benefits are provided and properly assessed.
• Self-reporting does not prevent litigationif the Fair Work Ombudsman forms the view that significant contraventions have occurred.

Practical Steps for Employers

1. Review all Individual Flexibility Arrangements currently in place to confirm employees are better off overall.
2. Audit overtime, minimum rates, trainee payments and first aid allowances under the Children’s Services Award.
3. Ensure IFAs are correctly documented, signed by both parties, and clearly identify the Award term being varied.
4. Keep accurate records of hours worked and the basis for any flexibility arrangements.
5. Seek advice before implementing or continuing IFAs that alter ordinary hours or overtime triggers.

At HR Bridge Australia, we regularly support childcare and early learning providers with Award compliance, Individual Flexibility Arrangements, trainee entitlements and payroll reviews. Getting these details right protects both your educators and your organisation.

If you would like a review of your current IFA practices, Award application or payroll settings, we are here to help.