Workers owed $600,000

A TOWNSVILLE youth care company that receives more than $4 million in State Government funding owes hundreds of employees upwards of $600,000, and is at risk of financial collapse.

Catalyst Child and Family Services Townsville, which operates near the location of a chroming scandal recently revealed by the Bulletin, was found to have underpaid up to 200 current and former employees in an error dating back to 2013. It is estimated the total amount owed is between $600,000 and $700,000, but as of its latest annual financial report, lodged in late January, the company noted it had been unable to quantify the amount due to all employees. The report also flagged that the “continued viability” of the company was of going concern, after incurring a net deficit of $335,565 in 2018-19 with liabilities of $1.36 million.

It is understood the company has also entered into payment arrangement with the Australian Taxation Office for $690,993 to be repaid over 24 months from December 2019.

Catalyst Child and Family Services Townsville received $4.05 million in funding from the State Government Department of Child Safety in 2018-19, and close to $4 million in other grant funding.

In a notice posted to its website late last year, Catalyst Child and Family Services said a self-disclosure by the company, which led to a review by the Fair Work Ombudsman, found it had contravened the Fair Work Act and the relevant industry award.

The Fair Work Ombudsman found it had failed to roster and offer hours as per provision of the award, failed to pay correct overtime rates for hours worked, on call allowances, shift and penalty rates and failed to apply the correct wage progression.

“Catalyst Child and Family Services Ltd expresses sincere regret and apologises for the unintended errors, which resulted in the contraventions,” chief executive Laurel Downey said in the notice, clarifying contingencies had been put in place to prevent the issue from happening again.