University of Queensland signs enforceable undertaking for $11m underpayment

A Brisbane-based university is the latest to sign the agreement with the Fair Work Ombudsman after first self-reporting payment deficiencies in 2021.

Payroll system, clerical and general oversights have been identified as the cause for the significant underpayments, which saw academic and professional staff covered by the institution’s 2014, 2018, and 2021 enterprise agreements affected between 2017 and 2026.

Of the total sum, unpaid wages account for $9.2 million, with the rest divided between $1.02 million in super, $427,000 in interest, and another $315,000 in lost interest on super.

The university has rectified a substantial portion of the underpayments to 13,514 current and former staff, with individual payments ranging from less than $1 to $41,643.

Affected employees worked at the university’s St Lucia, Herston, Dutton Park, and Gatton campuses, with approximately one quarter of underpaid employees from the University of Queensland's Health, Medicine and Behavioural Science faculty.

According to the Fair Work Ombudsman (FWO), errors were found in the calculator of minimum engagement periods, casual pay codes, base rates for some casual employees, the identification of relevant PhD qualifications, and additional or overtime hours.

The university commenced an external wage compliance review at the time of identification.

Fair Work Ombudsman Anna Booth said: “We acknowledge that the University of Queensland reported these underpayments to us and has been dedicated to taking action to rectify them and prevent future non-compliance impacting their staff.”

“Improving workplace compliance in the university sector has been an extended priority for the Fair Work Ombudsman, and we’ve made important progress nationally including through Enforceable Undertakings like this one.”

In addition to completing the back-payments, the University of Queensland will make a $175,000 contrition payment to the Commonwealth’s Consolidated Revenue Fund.

The university has also committed to several surveillance and reporting conditions, including: informing the Fair Work Ombudsman about its improved systems, ensuring relevant staff training, undertaking an independent compliance audit, consulting with staff and the National Tertiary Education Union on workplace relations and complaints systems, and strengthening governance oversight through its Senate Risk and Audit Committee.

Booth said: “We expect employers to take sustained and proactive steps to ensure staff receive their full lawful entitlements.”

This enforceable undertaking marks the 15th signed with a university following that of Central Queensland University in July, which saw more than $1.3 million backpaid to over 1,000 employees.

Want to see more stories from trusted news sources?
Make HR Leader a preferred news source on Google.