Fair Work Ombudsman's Inquiry into Disability Support Sector: What You Need to Know

The Fair Work Ombudsman (FWO) has launched an inquiry addressing non-compliance in the disability support services sector, which has significant implications for your organisation as an NDIS provider. 

Here’s what you need to know and how it could impact your business operations

Background of the Inquiry

The FWO has expressed serious concerns about widespread non-compliance regarding wages, entitlements, and working conditions within disability support services. 

“”Fair Work Ombudsman Anna Booth stated, “We have serious concerns about workplace compliance in the disability support services sector. The time is right to look at how we can boost compliance with workplace laws and ultimately drive systemic change.”

This multi-year inquiry will begin with an 18-month consultation period involving direct discussions with workers, managers, directors, digital platform providers, and clients. The objective is clear: identify the root causes of non-compliance to create sustainable improvements across the sector.

Key Concerns Highlighted by the Inquiry

The inquiry is targeting several important areas that may directly affect your organisation:

• Non-compliance among smaller and unregistered providers
• Rising labour costs
• The influence and regulation of digital gig platforms
• Financial pressures faced by service providers
• Heavy reliance on casual and migrant workers
• High employee turnover rates
• Complex regulatory requirements

These challenges may resonate with you as a provider in the sector, given the tight profit margins, continuous regulatory reforms, and demand for flexible service delivery that characterise the sector.

Fiona Macdonald from the Centre for Future Work emphasised the urgency of regulating the gig economy in disability services. She highlighted that competition based primarily on price contributes significantly to non-compliance. 

To remain compliant and ensure high-quality care, your organisation should prioritise sustainable business practices rather than short-term cost reduction measures.

The Australian Services Union (ASU) also supports the inquiry, drawing attention to common issues like wage underpayments, unpaid superannuation, and excessive unpaid overtime, particularly within some for-profit NDIS providers. The ASU advocates for stronger coordination between regulatory bodies, including the NDIS, ATO, ASIC, and FWO, to eliminate unethical providers exploiting regulatory loopholes.

Practical Steps You Can Take

To proactively address these compliance concerns, consider the following steps:

• Conduct Compliance Audits: Regularly assess your practices to ensure you meet Fair Work requirements related to wages, conditions, and employee entitlements.
• Leverage Technology: Utilise compliance-focused software and digital tools designed specifically for the NDIS sector to streamline payroll, rostering, and record-keeping, reducing the risk of errors and non-compliance.
• Review Your Staffing Models: Evaluate and adapt your workforce management strategies to reduce reliance on casual and gig workers, moving toward more stable and compliant employment models.
• Educate Your Workforce: Ensure employees clearly understand their rights and obligations, minimising inadvertent compliance breaches.
• Engage Actively with the Inquiry: Participate in the FWO’s consultation process. As Anna Booth says, “The better informed we are, the more able we are to achieve meaningful outcomes for businesses and workers in this critical sector. Our combined efforts will help make a difference.”

For further information or to engage directly with the inquiry, visit the dedicated page on the FWO website.