The University of Newcastle (UON) is back-paying staff about $6.2M plus superannuation and interest after the Fair Work Ombudsman found it underpaid 7,595 employees.
Fair Work says UON admitted that between 2014 and 2020, it underpaid the employees a total $6,269,241 owed under its applicable Enterprise Agreements and the Fair Work Act 2009, with individual underpayments ranging from less than $1 up to $65,449.
The Fair Work Ombudsman, Sandra Parker, said UON self-reported an initial underpayment in 2020 after staff enquiries from casuals at its Conservatorium of Music revealed $64,600 in underpayments.
“The university then self-initiated an audit of all employee entitlements under applicable Enterprise Agreements,” she said.
“UON failed to pay correct overtime and penalty rates, underpaid meal allowances and failed to provide minimum engagement hours owed to casuals.
“Underpaid UON employees performed work at all main campuses including Newcastle City, Callaghan, Ourimbah and Sydney and worked across various faculties, schools and business units.
“The underpaid UON employees, including professionals, academics and teachers, were engaged mainly as casuals but some full-time and part-time staff were affected.
“UON’s underpayments were the result of deficiencies in its payroll systems relating to interactions between overtime, allowances and penalty rates as well as incorrect application of the clauses in the applicable Enterprise Agreements,” Parker said.
The university has signed an Enforceable Undertaking with the Fair Work Ombudsman which requires back-pay of all known underpayments, plus a total of more than $171,000 in superannuation and more than $1,375,000 interest by October 31, 2022.
Parker said the university had taken the initiative to self-report non-compliance, fully co-operated to provide assurance on its remediation methods and committed to full back-payments.
“Under the Enforceable Undertaking, in addition to making full back-payments, this public university must implement stringent measures including systems improvements and training to ensure ongoing future compliance for the benefit of all their workers,” she said.
Parker said the university sector was a new compliance and enforcement priority for the Fair Work Ombudsman, reflecting concern about systemic underpayment issues being found.
“We have previously announced investigations into 11 specific universities, commenced a Federal Court case against the University of Melbourne earlier this month, and we expect to be taking further enforcement action against other institutions,” she said.
Charles Sturt University has also entered into an Enforceable Undertaking with the Fair Work Ombudsman to rectify $3.2M underpayments to 2,526 casual staff between 2015 and 2022, plus more than $628,000 in interest on wages and about $476,000 in relation to superannuation and related interest.
“Under their respective Enforceable Undertakings, the Newcastle and Charles Sturt universities will provide the Fair Work Ombudsman with evidence of their system and training improvements to address the issues which led to the underpayments,” Parker said.
Sue Murray