Almost 250 Federal Court employees underpaid
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The Federal Court has admitted to underpaying 248 casual employees since August 2018.
Due to a “payroll configuration issue”, 248 casual staff members who recorded fewer than four hours on their timesheets were not paid the minimum engagement entitlement since August 2018.
The average gross underpayment per employee is around $219, excluding interest, with total remediation payments of approximately $77,000, including superannuation and interest.
The court was alerted to the issue via “improved payroll assurance and control procedures”.
“The listed entity will continue to review and enhance its payroll controls to ensure its systems and processes are effective and compliant with legislative and policy requirements,” the court said.
“Relevant oversight agencies have been notified, the payroll issue has been corrected, and the listed entity is now focused on the timely payment of outstanding entitlements to affected current and former employees.”
No underpayments have been identified at the Federal Circuit and Family Court of Australia (FCFCOA), but it will conduct verifications, according to a statement provided to The Australian Financial Review.
Under the current Federal Court Enterprise Agreement 2024–2027, a casual employee “will be engaged for a minimum of four hours per engagement or shall be paid for a minimum of four hours at the appropriate casual rate”.
This agreement, approved in April 2024, also contained a number of changes that, when considered in isolation, were “less advantageous than the award”.
It included increased ordinary hours, an expanded spread of hours, and some penalty rates.
However, it also conferred benefits of universal application, including paid leave between Christmas and New Year’s, and increased superannuation contributions.
Fair Work former commissioner Christopher Platt found the universal improvements “offset the disadvantages referred to”.
RELATED TERMS
An employee is a person who has signed a contract with a company to provide services in exchange for pay or benefits. Employees vary from other employees like contractors in that their employer has the legal authority to set their working conditions, hours, and working practises.
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