Murdoch University signs enforceable undertaking for $4.9m underpayment

More than 2,000 staff members were found to have been underpaid by the Western Australian university after it conducted an internal compliance review in 2022.

Further to enforceable undertaking (EU) signings by the University of Queensland, Central Queensland University, and UNSW, Murdoch is the latest university to sign an Enforceable Undertaking with the Fair Work Ombudsman (FWO), with 2,100 workers employed at the university’s Perth campus underpaid over the span of a decade.

At the time of underpayment, workers were employed under the university’s 2014, 2018, and 2023 enterprise agreements, and the Fitness Industry Award 2010 and 2020.

According to the FWO, more than 80 per cent of affected employees were non-teaching, professional services staff, and the rest were casual academic staff. Overall, most impacted staff were casual, with some part-time or full-time.

Incorrect employment classifications and missing step-increments led to an underpayment of overtime rates, shift loadings and minimum engagement entitlements for professional staff, with underpaid PhD, tutoring and other academic activities resulting in deficiencies affecting the casual academic staff.

Individual backpayments range from $4 to over $40,000, with the university already completing more than $4.7 million to 1,830 current or former employees. As of August 2026, $195,875 remains outstanding to 271 employees, with additional backpayments expected as calculations continue.

The tertiary institution first reported non-compliance in March 2022 following an internal investigation prompted by FWO correspondence.

FWO Anna Booth praised the university for engaging with the regulator and its commitment of “substantial resources to identify and rectify underpayments and strengthen its systems”.

Murdoch University will complete a $125,000 contrition payment to the Commonwealth Consolidated Revenue Fund and comply with a range of FWO conditions to ensure ongoing compliance.

This includes supplying evidence of improved payroll and record-keeping to the FWO, training to all human resources, payroll and employee management staff, a commission of two independent compliance audits of workplace laws and enterprise agreements, the establishment and ongoing management of a complaint and review mechanism for employees, the operation of a dedicated employee hotline for workplace concerns, strengthened governance oversight and workplace compliance reporting to its Senate Audit and Risk Committee.

Noting that Murdoch University marks the 16th time an institution has signed an EU with the FWO, Booth said: “We don’t want systemic non-compliance to be a feature of the higher education sector going forward, and we expect employers to take sustained and proactive steps to ensure employees receive their full lawful entitlements.”

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