ENFORCEABLE UNDERTAKING This undertaking is given by The Creche and Kindergarten Association Limited (ABN 59 150 737 849) and accepted by the Fair Work Ombudsman pursuant to s 715(2) of the Fair Work Act 2009 in relation to the contraventions described in clause 6. of this undertaking. www.fairwork.gov.au | Fair Work Infoline: 13 13 94 | ABN: 43 884 188 232 ENFORCEABLE UNDERTAKING PARTIES 1. This enforceable undertaking (Undertaking) is given to the Fair Work Ombudsman (FWO) pursuant to section 715 of the Fair Work Act 2009 (Cth) (FW Act) by The Creche and Kindergarten Association Limited (C&K), 257 Gympie Road, Kedron, Queensland 4031. COMMENCEMENT 2. This Undertaking comes into effect when: (a) the Undertaking is executed by C&K; and (b) the FWO accepts the Undertaking so executed (Commencement Date). BACKGROUND 3. C&K is a not-for-profit company operating 180 C&K childcare centres and kindergartens across Queensland. C&K also operates a Registered Training Organisation. C&K employs over 2,000 teachers, educators and support employees. C&K processes payroll for approximately 1,600 employees fortnightly. 4. On 14 October 2020 and 15 January 2021, C&K notified the FWO that: (a) In the course of conducting a self-initiated review of its payroll systems in preparation for implementing new systems, C&K had identified underpayments for the period from 1 July 2013 to 16 September 2020 totalling $209,168 for 1,336 current and former employees listed in the Schedules to this Undertaking (Schedule Employees). (b) The underpayments arose as a result of C&K applying an incorrect interpretation to the terms of the applicable enterprise agreement, resulting in some part-time and casual employees being paid at ordinary or penalty rates for certain hours which should have correctly been paid at overtime rates. In particular: i. the averaging of hours across fortnightly periods for part-time and casual employees covered by the C&K Children’s Services Enterprise Agreement 2019 (the current EA) and preceding agreements with Page 2 of 71 similar clauses (C&K Children’s Services Enterprise Agreement 20132015 and C&K Children’s Services Enterprise Agreement 2016) (collectively, Children’s Services EAs), rather than calculating overtime on a weekly basis as required by these enterprise agreements; and ii. not paying overtime rates for work performed by a casual employee covered by the Children’s Services EAs in excess of eight hours per day, as required by the Children’s Services EAs. 5. Prior to the execution of this Undertaking, C&K notified the FWO that, it had: (a) calculated and rectified the underpayments referred to in clause 4. above by 10 March 2021 making payments to each of the 1,260 employees referred to in column A of Schedule A to this Undertaking (Schedule A Employees) in the amounts referred to in column B of Schedule A; (b) paid interest to each of the Schedule A Employees on the amount referred to in column B of Schedule A, in the sum referred to in column C of Schedule A, calculated using an interest rate that is 5% compound interest per annum totalling $40,442; (c) taken steps to make payments totalling $8,659.60 to 76 former employees referred to in column A of Schedule B to this Undertaking (Schedule B Employees) whom C&K had been unable to locate and was attempting to make payments into the last known bank accounts for these employees; and (d) updated payroll rules to apply the correct interpretations of the current EA to avoid underpayments occurring again in future. ADMISSIONS 6. The FWO has a reasonable belief, and C&K admits, that C&K contravened section 50 of the FW Act between 1 July 2013 and 16 September 2020 (Relevant Period) by contravening clauses 11.4(g) and 11.5(f) of the Children’s Services EAs by failing to pay the Schedule Employees the correct overtime rates required to be paid to part-time and casual employees for some time worked in excess of ordinary hours. Page 3 of 71 7. The contraventions identified in clause 6. of this Undertaking do not include: (a) any contraventions which relate to or arise as a consequence of C&K failing to correctly apply the Children’s Services EAs to any employee not listed in the Schedules to this Undertaking (Non-schedule Employees). For the avoidance of doubt, this Undertaking is not given in respect of any Non-schedule Employees who were underpaid as a result of C&K failing to correctly apply the Children’s Services EAs and the FWO’

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