The University of Sydney has pledged to repay more than $23 million to current and former employees after widespread wage underpayments were uncovered. This comes as part of an enforceable undertaking (EU) with the Fair Work Ombudsman (FWO).
The underpayments, which occurred between January 2014 and June 2022, impacted over 14,000 employees and included shortfalls in base pay rates, casual engagement periods, leave payments, overtime, allowances, and penalty rates. The total amount comprises $19 million in wages, $3.2 million in interest, and $950,000 in superannuation. To date, the university has already reimbursed $20.49 million to affected staff.
Individual underpayments ranged from $1 to over $83,000, with an average shortfall of $1,300 per employee, excluding interest and superannuation. Under the EU, the university will continue reviewing casual academic staff payments to identify and rectify any additional discrepancies. The agreement also mandates independent audits and a $500,000 contribution to the Commonwealth’s Consolidated Revenue Fund.
Fair Work Ombudsman Anna Booth noted that the EU aims to drive cultural and systemic change within the university sector. “This undertaking ensures compliance measures are strengthened and signals to the sector that addressing these issues is non-negotiable,” Booth said.
This case is not an isolated incident. The University of Melbourne recently agreed to repay $72 million for similar wage underpayments, highlighting broader systemic issues across the tertiary education sector.
The University of Sydney’s case also sheds light on the importance of proper record-keeping, as failures to document pay and entitlements contributed to the breaches. Booth stressed that accurate records are critical to ensuring compliance with workplace laws and avoiding significant penalties or reputational harm.
Fair Work continues to prioritise compliance in the university sector, urging institutions to take proactive steps to ensure they meet all payroll and employment obligations.
