Capecare to compensate 400 current and former staff after six years of underpayments

WA regional Not For Profit Capecare has become the latest aged care provider caught up in wage underpayments. Around 400 current and former award-based staff at Capecare, based in WA’s South West region, will be repaid wage deficits owing to payroll discrepancies between 2014 and 2020, with interest; the errors were found after an investigation of inconsistent award interpretations flagged by a new member of payroll staff. According to Capecare Chair Martha Ryan, the provider has taken the underpayments seriously.

“We sincerely apologise to affected staff and Capecare is doing its best to compensate staff as quickly as possible. “On discovery of the potential errors, the Board and Management proactively appointed independent auditors KPMG to undertake an extensive review to ensure accuracy and full transparency,” she said.

Capecare CEO Joanne Penman says the provider has taken all reasonable steps to stop the mistakes from happening again.

“We are implementing a number of new procedures and systems, including investing in a new HR information system to measure time and attendance; outsourcing the payroll function; utilising a Compliance Officer to monitor changes to awards and national employment standards; developing an internal payroll audit process; and introducing annual external payroll audits,” she said.

The news broke just a few months after Bupa announced it would compensate underpaid staff by a total of up to $75 million.