Underpayment stems from incorrect payroll system configurations, clerical errors, and other oversights
The University of Queensland is backpaying more than 16,000 current and former staff after underpaying them about $11 million between 2017 and 2026.
The university underpaid employees a total of $9.1 million in wages, about $427,000 in interest, $1.02 million in superannuation, and about $315,000 in interest on the superannuation, according to the Fair Work Ombudsman.
It has remediated more than $9.6 million, including superannuation and interest, to 13,514 current and former employees affected by the underpayment.
Among the employees impacted are academic and professional staff working at the university's St Lucia, Herston, and Dutton Park campuses in Brisbane, as well as its Gatton campus.
Over a quarter of affected employees also came from the university's Health, Medicine, and Behavioural Science faculty, according to the FWO.
The highest amount paid to an individual to remedy an underpayment has reached $41,643, including interest and superannuation. The average amount was $564.
What went wrong?
The University of Queensland discovered the underpayments after carrying out an external review into wage compliance to ensure that it was applying its enterprise agreement correctly.
It found, however, that it failed to comply with its 2014, 2018, and 2021 enterprise agreements due to incorrect payroll system configurations, clerical errors, and other oversights.
There were also errors relating to workers' minimum engagement periods, casual pay codes, the base rate for some casual employees, failure to identify relevant PhD qualifications, and failure to record additional or overtime hours worked.
"I would like to sincerely apologise again to current and former staff," a university spokesperson said, as quoted by 7NEWS.com.au.
"Although unintentional, this does not reflect our commitment to our people and the University will ensure that affected staff will receive all back pay, including superannuation and interest."
Enforceable Undertaking with FWO
The university self-reported the underpayments and entered an Enforceable Undertaking with the FWO.
The EU requires the university to ensure that remediation is made for the remaining underpaid staff. It also ensures a commitment from the institution on:
- Informing the FWO of its improved payroll, time-and-attendance, and record-keeping systems
- Mandatory training for staff with supervisory responsibilities on employee entitlements and record-keeping obligations
- An independent audit to ensure ongoing compliance with workplace laws and enterprise agreements
- Consulting with staff and the National Tertiary Education Union on workplace relations matters and maintaining a complaints and review mechanism for affected staff
- Strengthening governance oversight through the university's Senate Risk and Audit Committee
This is the 15th EU signed by the FWO with a university amid rising cases of underpayments in Australia's tertiary sector.
"The Enforceable Undertaking with the University of Queensland highlights the importance of universities improving their governance over payroll and administrative systems to ensure employees are paid correctly from the start of, and throughout, the term of a uni's own enterprise agreement," said Fair Work Ombudsman Anna Booth.
"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."
