Charles Darwin University signs EU after $4m in underpayments
SHARE THIS ARTICLE
A contrition payment and $4 million in back pay have been ordered for over 800 underpaid staff from the university.
The non-compliance was self-reported to the Fair Work Ombudsman (FWO) in March 2022, after the FWO requested that all universities ensure they were within workplace laws in 2020.
Occurring between 2016 and 2022 over numerous campuses across the Northern Territory, a significant portion of the university’s underpayments had already been rectified as of January, with more than $3.5 million back paid to 612 current or former employees.
These underpayments totalled as high as $242,280, but averaged approximately $1,700.
According to the FWO, a further $500,000 is yet to be paid to 211 individuals, with the university expected to complete remediation to all underpaid employees by the end of September.
It is understood that a payroll review is underway regarding further underpayments of at least 1,483 current or former employees, with the total number yet to be determined.
Impacted employees included current and former casual employees in professional and academic positions, with the university identifying breaches of its 2013, 2018, and 2022 enterprise agreements regarding correct payment of casual hourly rates of pay, penalty rates, minimum engagement period, overtime, and overtime-related entitlements due to a decentralised payroll system that did not process all timesheets accurately.
The university will make a $200,000 contrition payment to a not-for-profit organisation that addresses conditions and standards in property cleaning services, the Cleaning Accountability Framework.
In addition, the enforceable undertaking (EU) dictates preventative measures, including the sharing of system and process improvements to the FWO, additional Fair Work Act training for staff, the commissioning of up to two independent compliance audits – and making any corresponding rectifications – informing staff of the EU, and the maintenance of an employee payment complaint and review system.
On the self-reported non-compliance and engagement of a legal firm when it was first identified, FWO Anna Booth said: “Charles Darwin University deserves credit for committing significant time and resources to put in place corrective measures that will ensure both full remediation of impacted staff and improved compliance for the future.”
“Our preference is for universities to engage openly with us about any compliance failures and for us to work with them to correct any problems.”
In September last year, the University of Wollongong was ordered to back pay $6.6 million to thousands of underpaid staff as part of an EU. Similarly, Monash University signed an EU with the FWO concerning underpayments worth $20.7 million in December 2025.
RELATED TERMS
Compliance often refers to a company's and its workers' adherence to corporate rules, laws, and codes of conduct.
Want to see more stories from trusted news sources?Make HR Leader a preferred news source on Google.
Amelia McNamara
Amelia is a Professional Services Journalist with Momentum Media, covering Lawyers Weekly, HR Leader, Accountants Daily and Accounting Times. She has a background in technical copy and arts and culture journalism, and enjoys screenwriting in her spare time.
