The University of Sydney has committed to repaying over $23 million to past and present employees due to widespread underpayment of wages. This decision follows an enforceable undertaking (EU) agreed upon with the Fair Work Ombudsman (FWO).
The breaches involved underpaying various entitlements, including base pay rates, casual employee engagement periods, leave payments, overtime, allowances, and penalties. These infractions occurred between January 2014 and June 2022 and affected more than 14,000 workers. The total underpayment includes $19 million in wages, $3.2 million in interest, and $950,000 in superannuation. The university has already reimbursed $20.49 million to rectify these issues.
Individual cases of underpayment ranged from as little as $1 to over $83,000, with the average affected employee underpaid by approximately $1,300, excluding interest and superannuation. While the university has taken corrective actions, the EU requires it to complete a review of casual academic staff payments and address any further discrepancies identified. Additionally, the university must undertake independent audits and pay $500,000 to the Commonwealth’s Consolidated Revenue Fund.
Fair Work Ombudsman Anna Booth highlighted the importance of such measures to ensure compliance and foster a cultural shift in the university sector. According to Booth, the commitments under the EU, including enhancing employee consultation and compliance monitoring, aim to prevent future violations and build trust.
The issue is not unique to the University of Sydney. The University of Melbourne recently agreed to repay $72 million for similar underpayments, highlighting systemic challenges within the sector. Fair Work continues to prioritise addressing these widespread compliance issues across universities.
This situation also underscores the broader risks associated with inadequate record-keeping, as evidenced by the University of Sydney’s failure to properly document remuneration and other pay-related data. Booth emphasised that accurate record-keeping is essential for compliance, urging employers to ensure all payroll obligations are met to avoid similar penalties and reputational damage.
