Spotlight on Payroll Compliance in the Disability and Community Support Services Sector
Recent Fair Work Ombudsman (“FWO”) compliance and enforcement efforts have highlighted yet again the payroll compliance risks that uniquely effect the disability and community support services sector.
In this Insight, we will summarise the FWO’s recent enforcement activity and the key takeaways for employers in the sector.
Recent activity
On 25 February 2026, the FWO announced it had commenced legal action against a Queensland-based disability support services company, Agape Reablement and Support Services NSW Pty Ltd (“Agape”), and its director.
The FWO alleges that Agape, without reasonable excuse, failed to fully comply with a Compliance Notice issued to it in October 2024, which required Agape to calculate and back-pay workers’ entitlements. The relevant Fair Work Inspector had formed a belief that Agape had underpaid annual leave entitlements, casual workers’ minimum hourly rates of pay, and allowances under the Social, Community, Home Care and Disability Services Industry Award 2010.
In the media release regarding this legal action, FWO Anna Booth noted: “Employers should also be aware that taking action to improve compliance in the disability support services sector is a priority for the Fair Work Ombudsman”.
On 3 March 2026, the FWO announced that Uniting Communities, a South Australian community services provider, will return more than $2.6 million in underpayments, including interest and superannuation, to approximately 1,500 current and former staff, as part of entering into an Enforceable Undertaking with the regulator.
The causes of the underpayments included the misapplication of the organisation’s enterprise agreements (including a failure to apply annual wage increases to employees, as well as missed penalty rates, allowances and superannuation), and payroll system deficiencies.
In relation to this matter FWO Anna Booth commented: “The matter serves as a warning of the significant long-running problems that can result from an employer failing to have appropriate checks and balances to ensure workplace compliance. We expect employers to meet their legal obligations under their own enterprise agreements”.
These matters follow the inquiry launched by the FWO in July 2025 into compliance with workplace laws in the disability support services sector. The FWO is working with sector participants to identify causes of non-compliance and to find the most effective ways to improve and sustain a culture of compliance.
Further, the FWO’s priority areas for both the 2024-2025 and 2025-2026 financial years include the disability support services sector. During the 2024-2025 financial year, the FWO issued 39 Compliance Notices, two Enforceable Undertakings and recovered more than $20 million in unpaid entitlements for 7,307 workers in the sector.
Key takeaways for employers
Compliance with industrial instruments is particularly challenging in the disability and community support services sector. Employees in this industry may work part-time or casually, and shift work is very common (for example, afternoon/night shifts, broken shifts and sleepover shifts). This increases the risk of non-compliant rostering arrangements and missed payments.
The FWO’s recent activity should spur employers in this sector to:
Review compliance with applicable enterprise agreements and/or modern awards with a heightened focus on overtime, penalty rates, shift loadings and allowances. Compliance should be reviewed regularly – for example, employers should routinely check pay rules and test rostering practices against the applicable industrial instruments.
Invest in payroll systems and education of payroll personnel. Industrial instruments which cover this sector are complex and employers should be investing in, and properly configuring, payroll systems to accommodate the pay rules.
Conduct regular pay reviews (particularly if a review has not occurred in the past 12 months). This will ensure that any instances of non-compliance are fixed before they get out of hand.
If non-compliance is identified, take prompt action which may include obtaining legal advice, remediating underpayments and engaging with the FWO.
Cowell Clarke is experienced in the disability and community services sector and is pleased to offer its RemCheck service to organisations that wish to obtain peace of mind by confirming their payroll compliance. Our Employment & Workplace Relations Team can also provide advice should you have any queries or concerns. Contact Cassie Burfoot, Director, or Emily Gray, Senior Associate, for further information.