Fair Work Agency recovers over £100,000 in unpaid mileage
The Fair Work Agency recovered over £107,000 in unpaid mileage for domiciliary care workers after identifying underpayments during an investigation.
The Fair Work Agency conducted an investigation after receiving information through its contact centre, uncovering that domiciliary care workers at a care provider were not receiving proper reimbursement for mileage incurred during their duties. The inquiry revealed systematic underpayments affecting current and former employees, prompting a review of the employer’s mileage arrangements. Following the investigation, the employer acknowledged the underpayments and committed to compensating affected workers, including those no longer employed by the company. The organisation also increased its mileage reimbursement rate from 5p to 40p per mile for 2026 as part of the resolution.
The Fair Work Agency secured over £107,000 in reimbursements for the workers, addressing financial shortfalls caused by the employer’s mileage policy. The investigation highlighted the importance of compliance with employment rights, particularly for vulnerable sectors such as care work. Employers were reminded of their obligations to ensure workers receive all legally owed payments and entitlements. The outcome underscores the agency’s role in enforcing fair work standards across industries.
The employer’s decision to raise the mileage rate to 40p per mile for 2026 reflects a proactive step to align with fair compensation practices. This adjustment applies to all workers, including those who had previously been underpaid. The change aims to prevent future discrepancies and improve transparency in expense reimbursement processes. The Fair Work Agency welcomed the employer’s cooperation and commitment to rectifying past underpayments.
The Fair Work Agency reiterated its ongoing commitment to supporting both workers and employers in ensuring compliance with employment rights. The agency continues to work with stakeholders to raise awareness of legal entitlements and address systemic issues in pay and reimbursements. This case demonstrates the agency’s effectiveness in resolving disputes and promoting fair workplace practices through targeted investigations and enforcement.