June 28th 2024.
In 2019, World Vision Australia made the decision to self-report to the Fair Work Ombudsman after discovering that some of their employees had not been receiving the correct payments. As a result, the charity has now paid back over $6 million to its staff. This was a result of compliance issues that were detected during an internal review.
The Fair Work Ombudsman found that a total of 3000 employees, both current and former, had been underpaid. This amounted to a staggering $4.6 million in unpaid wages and entitlements, including minimum wages, penalty rates, overtime, leave entitlements, and allowances. The Ombudsman also reported that World Vision Australia has now paid an additional $1.4 million in superannuation and interest.
Individual back-payments ranged from small amounts of less than $50 to a maximum of $84,394, with the average being around $1900. In addition, the charity has also paid back the money it owed to more than 1000 former employees who could not be located. This was done through the Fair Work Ombudsman as unclaimed monies.
Fair Work Ombudsman Anna Booth stated that an enforceable undertaking was the appropriate course of action for World Vision Australia as the charity had fully cooperated with their investigation. She also acknowledged the charity's commitment to rectifying the underpayments and ensuring future compliance.
Booth stated that as part of the enforceable undertaking, World Vision Australia has committed to implementing strict measures to ensure that all employees are paid correctly. This includes the implementation of a new time and wages payroll system and conducting at least one annual audit, at the charity's own cost, to ensure compliance with employee entitlements.
In addition, the charity is required to provide a report to the Fair Work Ombudsman on their progress in implementing these improvements, run an independent employee hotline for three months, and publish and display notices about the undertaking and its breaches on its website and offices in Melbourne and Sydney.
When contacted for further comment, World Vision Australia declined to provide any additional information. The charity is determined to make things right for its employees and has taken necessary steps to ensure that such compliance issues do not occur in the future.
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