How Citation Legal supports organisations in the allied health and aged care industry

Australia’s aged care and allied health industry is at a pivotal moment. With a workforce of approximately 370,000 individuals, including personal care workers, nurses, and allied health professionals, the sector is essential in supporting the well-being of millions requiring allied health services, residential aged care, and in-home care services. Currently, over 1.2 million Australians rely on aged care services, whether through home support, home care, or residential care.

Yet, alongside these opportunities come challenges like regulatory changes, workforce shortages, and evolving care models. Navigating such complexities demands collaboration and the right support to ensure businesses can thrive while delivering high-quality care. How do we help businesses rise to these challenges and achieve their goals?

Here, we dive into the common pain points businesses face in this growing industry and share how our team of employment law experts can support you through them.

The top four challenges businesses face in the allied health and aged care industry

From employment contracts and award compliance to disciplinary and performance management, our experts answer hundreds of enquiries from our clients annually.

1. Employment contracts

Unclear or inconsistent employment contracts add stress to an already demanding industry where skill shortages and talent retention are growing problems. And our data confirms that employment contracts remain a significant area of concern, with 18.8 per cent of our HR Advice Line client calls relating to this issue over the last 12 months. Water-tight HR processes ensure that contracts and aged care industry labour agreements are accurate and compliant, providing workers with clear terms about their roles, responsibilities, and entitlements. With our expertise, our team help clients avoid disputes and provides a foundation for compliant and effective workplace agreements.

2. Modern awards, award classification, and wages

The list of modern awards is long and exhausting, but they’re an essential part of industrial relations. Ensuring fair pay and accurate classification under modern awards is a necessity, not an option. With 15.4 per cent of our client calls focused on award compliance and 6.6 per cent on classification issues, it’s clear that these areas are complex. Robust HR systems are essential to not only ensure compliance but also build trust, enhance employee satisfaction, and create a sustainable, equitable workplace culture.

3. Disciplinary and performance management

Poor performance management processes can do more damage to workplace relationships and decrease morale than you might think. Clear HR policies that ensure fair and consistent appraisals bridge the gap between staff expectations and organisational goals, reducing turnover rates. With 9.5 per cent of aged care calls related to disciplinary concerns, performance management plans, and how to performance manage someone, we provide clients with tools and frameworks to address these issues consistently and lawfully.

4. Termination and redundancy

Employer termination queries comprise 6.3 per cent of our annual client calls, reflecting a need for clarity around this challenging area. Managing termination of employment and redundancy without clear procedures risks legal complications and harm to organisational reputation. We guide businesses on best practices and legal obligations, reducing risks, avoiding costly disputes, and ensuring fairness in the process.

What’s on the horizon for the industry?

The industry is facing more reforms in 2025, with challenges like workforce shortages, compliance demands, and the rising need for quality services testing providers.

• Proactive investigations: starting February 2025, the Fair Work Ombudsman will investigate the aged care sector to ensure compliance with the Fair Work Act, focusing on wages, entitlements, and record-keeping. Inspectors can take actions like entering premises, conducting interviews, and issuing Compliance Notices, and employers are required to cooperate fully.
• Wage increases: mandatory wage increases for aged care workers are coming after updates to the Aged Care Award 2010 in January 2025. These changes include revised pay rates and classifications, now covering nursing assistants in residential care, previously under the Nurses Award 2020.
• National Worker Registration Scheme feedback: from 18 February to 17 April 2025, the Albanese Government will consult on a proposed National Registration Scheme for aged care personal care workers. The scheme aims to standardise qualifications, training, conduct standards, and worker screening to enhance professionalism and accountability in the sector.
• Annual Wage Review: the Fair Work Commission’s Annual Wage Review in June 2025 may bring further wage adjustments, so employers should stay prepared.

You can find more in-depth information about these changes here.

Across all our interactions with businesses operating in allied health and aged care, we’ve helped clients demystify the intricate legal and workforce challenges in this sector. From contracts to termination, our proven ability to provide clarity and actionable solutions enables clients to confidently navigate the complexities of the allied health and aged care industry in Australia. By partnering with us, businesses gain access to the expertise they need to meet regulatory standards, enhance workforce satisfaction, and deliver exceptional care outcomes.

If any of this information has raised questions about your workplace compliance or you’ve got another matter you need assistance with, please reach out to the Citation Legal team for a confidential discussion today.