For nearly seven years, hundreds of workers — most of them migrants and visa holders — quietly received less than they were owed while caring for Australia's elderly. Goodwin Aged Care Services, a registered charity in the ACT and NSW, has now been ordered to return $1.39 million to 335 employees, a reckoning that exposes how legal flexibility mechanisms and technical payroll failures can compound into systemic harm when those most affected are least positioned to speak up. The Fair Work Ombudsman's intervention is not an isolated correction but part of a widening audit of an industry where th
Aged care provider ordered to back pay $1.39m to mostly migrant staff
335 employees, predominantly migrant workers and visa holders, lost wages totaling $1.39 million over approximately seven years, with individual underpayments ranging up to $38,760.
Three-quarters had English as a second language, one in ten were visa holders.
Mark
Why does it matter that most of these workers were migrants or visa holders?
Mimi
Because they're less likely to know their rights, and more likely to stay silent if something feels wrong. They can't afford to lose the job or risk their visa status.
Luke
That's the theory. But did Goodwin specifically target migrants, or did the bad agreements just happen to affect them because they're a large part of the workforce?
Mimi
The Fair Work report doesn't say Goodwin deliberately targeted them. It's more that the system—the IFAs, the payroll errors—caught them disproportionately.
Mark
So what's an IFA, exactly?
Mimi
It's a deal between employer and worker where you agree to different terms than the standard award. The catch is it has to leave you better off overall. Goodwin's didn't.
Luke
How do you measure "better off overall"? That's subjective.
Mimi
Not really. You compare wages and conditions under the IFA to what the award guarantees. If the IFA cuts wages but adds, say, flexible hours, you have to prove the worker comes out ahead.
Mark
And Goodwin couldn't prove that?
Mimi
No. In 313 cases, the agreements leaned too heavily on non-monetary benefits—things that don't pay bills.
Luke
One more thing: Goodwin self-reported. Does that matter?
Mimi
It probably helped their case. They came forward in July 2024 instead of waiting to be caught.
Mark
But the underpayments went back to 2018. That's six years of silence before they reported.
Luke
Exactly. Self-reporting is good, but it doesn't erase the fact that workers went years without money they were owed.
Il Polso
- 335 workers — three-quarters of whom spoke English as a second language, one in ten holding visas — were shorted a combined $1.39 million over nearly seven years, with one individual owed as much as $38,760.
- The underpayments were not incidental: individual flexibility arrangements, meant to benefit both employer and employee, were instead structured around non-monetary perks that cannot pay rent, failing the legal 'better off overall' test in 313 cases.
- A separate payroll misconfiguration quietly stripped 22 residential care workers of penalty rates for early afternoon shifts, revealing that the failures were both structural and technical — not a single oversight but a layered compliance breakdown.
- Goodwin self-reported in July 2024 and has since completed remediation for reachable employees, transferring unclaimed funds to the regulator and pledging stronger payroll governance — steps that satisfy the undertaking but leave open whether genuine reform will follow.
- The Fair Work Ombudsman is now auditing 30 additional aged care providers, following findings that 22 others collectively owed over $5.3 million to 3,600 workers — signalling that Goodwin's case is a symptom, not an anomaly.
For nearly seven years, hundreds of workers — most of them migrants and visa holders — quietly received less than they were owed while caring for Australia's elderly. Goodwin Aged Care Services, a registered charity in the ACT and NSW, has now been ordered to return $1.39 million to 335 employees, a reckoning that exposes how legal flexibility mechanisms and technical payroll failures can compound into systemic harm when those most affected are least positioned to speak up. The Fair Work Ombudsman's intervention is not an isolated correction but part of a widening audit of an industry where the labour of the vulnerable has long subsidised the care of the vulnerable.
Goodwin Aged Care Services, a registered charity running retirement and residential care across the ACT and NSW, has been ordered to back pay $1.39 million to 335 employees after an enforceable undertaking with the Fair Work Ombudsman. The underpayments ran from July 2018 to March 2025 — nearly seven years — and the largest individual shortfall reached $38,760, with an average of $4,165 per worker.
What makes the case particularly pointed is who was harmed. Three-quarters of the underpaid staff had English as a second language, and one in ten were visa holders — nurses, allied health workers, care managers, and support staff in cleaning, laundry, and administration. Fair Work Ombudsman Anna Booth noted that migrant and visa-holding workers are especially exposed: they may not know their legal entitlements, and many fear that raising concerns could cost them their jobs or their visa status.
The underpayments came from two sources. The first involved individual flexibility arrangements — negotiated working terms that the Fair Work Act requires to leave employees 'better off overall.' In 313 cases, Goodwin's arrangements failed that test, leaning too heavily on non-monetary benefits that carry no weight when bills are due. The second was simpler but no less consequential: a payroll system error that blocked 22 residential care workers from receiving penalty rates for early afternoon shifts.
Goodwin self-reported its non-compliance in mid-2024. The company says it has since paid all workers it could locate, transferred remaining funds to the regulator for those it could not reach, and overhauled its payroll governance. Whether those changes represent genuine reform or the minimum required to satisfy a watchdog now paying close attention remains an open question.
The regulator is not looking away. Earlier this year, 22 aged care organisations were found to collectively owe more than $5.3 million to 3,600 employees. Thirty more providers are currently under audit — a signal that wage underpayment in aged care is being treated not as a series of isolated incidents, but as an industry-wide pattern demanding sustained scrutiny.
Goodwin Aged Care Services, a registered charity operating retirement living and residential aged care across the ACT and NSW, has been ordered to back pay $1.39 million to 335 employees under an enforceable undertaking with the Fair Work Ombudsman. The underpayments span nearly seven years, from July 2018 through March 2025, and stem from two distinct sources: worker agreements that systematically disadvantaged staff, and errors buried in the company's payroll system. One employee is owed $38,760. The average back payment across all affected workers comes to $4,165.
The company self-reported its non-compliance in July 2024, which triggered the investigation. Most of the affected staff worked in the ACT and held positions as nurses, allied health professionals, care managers, and support workers in food services, cleaning, laundry, planning, and administration. What stands out in the Fair Work Ombudsman's findings is the composition of the workforce: three-quarters of those underpaid had English as a second language, and one in ten were visa holders. This concentration matters. Fair Work Ombudsman Anna Booth noted that migrant and visa-holding workers face particular vulnerability in the workplace—they may lack awareness of their legal entitlements or feel unable to raise concerns without jeopardizing their employment status. The aged care sector, she observed, is a significant employer of migrant workers across Australia.
The underpayments originated primarily from what are called individual flexibility arrangements, or IFAs. These are alternative working terms negotiated between employer and employee, designed to suit both parties. The Fair Work Act requires that any IFA leave a worker "better off overall" when compared to their award or registered agreement. Goodwin's arrangements failed this test. In 313 of the IFAs examined, the Fair Work Ombudsman found workers were disadvantaged because the agreements were "over-reliant" on non-monetary benefits—perks that do not translate to wages and cannot pay rent or buy groceries. Beyond the IFA problem, a separate payroll system misconfiguration prevented 22 residential care employees from receiving penalty rates for early afternoon shifts, a straightforward compliance failure rooted in technical error.
Goodwin is not alone. Earlier this year, the Fair Work Ombudsman investigated 22 aged care organisations and found they collectively owed more than $5.3 million to 3,600 employees. The regulator is currently auditing 30 additional providers for compliance with the Fair Work Act, signaling sustained pressure on an industry where wage theft and underpayment have become systemic concerns.
In response, Goodwin said it has completed remediation for all affected employees it could contact. For workers the company could not reach, funds have been transferred to the Fair Work Ombudsman. The organisation also stated it has strengthened payroll governance and implemented measures to prevent similar breaches. A company spokesperson said Goodwin "acted promptly to understand their full extent and support affected employees." What remains unclear is whether these steps will prevent future underpayment, or whether they represent the minimum required to satisfy a regulator now watching the sector closely.
Citazioni salienti
Migrants and visa holders are a priority for the FWO, as they can be vulnerable in the workplace including due to lack of awareness of laws or concerns about speaking up.— Fair Work Ombudsman Anna Booth
Goodwin acted promptly to understand their full extent and support affected employees.— Goodwin Aged Care Services spokesperson
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