A major disability services provider in Tasmania has pledged to repay staff after discovering some $700,000 in underpayments spanning several years.
Not-for-profit Li-Ve Tasmania will formally apologise to workers after identifying an anomaly relating to a penalty rate payment.
CEO Darren Mathewson says a specific penalty rate applying to broken shifts extending beyond a 12-hour period was not paid.
He says the provider is calculating the final figure but estimates it is up to $700,000 across a number of years.
A large number of current employees and some former staff have been affected.
"We will be issuing a formal apology to our staff. We have let our people down but we are making sure we fix it. Every dollar we owe will be paid," Mr Mathewson said in a statement on Wednesday.
"We will be paying superannuation and interest on top of the enterprise agreement amount so employees are not out of pocket."
Li-Ve Tasmania, which is understood to employ several hundred people, has informed staff and expects to fully reimburse them by mid September.
Mr Mathewson said the provider is able to cover the outstanding payments and ongoing operations would not be affected.
"We were extremely concerned when we discovered this error and immediately began the work required to audit our payroll and pay all current and former employees their full entitlements as soon as we can," he said.
An NDIS-registered provider, Li-Ve Tasmania has provided support to people living with disability for almost 70 years.
Li-Ve Tasmania says it has informed the Fair Work Commission and the Health and Community Services Union.