Lithgow Aged Care: Historical Underpayments
Published October 8, 2021
The HSU is pleased to inform you that the long-awaited settlement of historical underpayments from Lithgow Aged Care has been reached. The process of payments being made to members that were underpaid will be starting shortly, with the expectation that payments will be made before Christmas.
Process & Proposed Timeframe
There is a process that needs to be followed for underpayments to be paid:
Next week, the liquidator will send out a letter with a Proof of Debt form. If you are identified as being owed money you will not be required to supply evidence but will still need to return the form.
- 18 November is the final date to appeal amount owed (evidence required). If you believe amounts are incorrect, this is the time to make an additional claim.
- 5 December – Appeal period ends.
- 10 December – Dividend declared.
- Shortly afterwards, money to be received.
The amount to be received will vary between members, and some members may not receive any back pay for underpayments.
Members will have experienced issues previously associated with Lithgow Aged Care’s pay system, and it appears that in the past they have made overpayments as well as underpayments. In some cases, overpayments have offset any underpayments made, meaning that some members may be entitled to zero or very little back pay. This may come as a disappointment, but it means that you either received the correct amount of pay at the time or were overpaid in the past. If you were overpaid there will be no attempt to reclaim this money from you.
The HSU will continue to assist any member who believes the amount that the liquidator informs you of is incorrect. To do this, you will need to return the Proof of Debt form to the liquidator as well as the evidence that will be required to substantiate any claim.
The HSU held concerns over laundry allowance not being paid and this issue has now been acknowledged by the liquidator. These payments have been included in the final calculations of amounts owed.
The repayment of historical underpayments might never have been possible if it were not for HSU members bringing it to our attention and being willing to persevere with the difficult and drawn-out process. Without members standing up to fight for their entitlements, this wouldn’t have happened.
This issue, and the many others that continue in aged care, highlights the importance of being an HSU member. Being a member helps to protect your rights and fight for a better tomorrow. If you know a work colleague who is not yet a member, encourage them to join at www.hsu.asn.au/join or call 1300 478 679.