ACU underpays 1,100 casual staff by $3.6 million

The Australian Catholic University (ACU) has revealed that it underpaid around 1,100 casual employees by approximately $3.6 million between 2016 to 2023.

On its website, the ACU said the underpayments "relate to the incorrect application of employee entitlements."

It explained that sessional or casual employees are entitled to a higher rate of pay when they have a PhD qualification, or if they are undertaking subject/unit coordination or Lecturer-in-charge duties.

"Our review identified that, in some circumstances, an employee was entitled to a higher rate for some activities, but they were not being consistently paid at the higher rate," the ACU said on its website.

More than 1,000 employees affected by underpayments

Approximately 1,100 current and former sessional academic employees who were employed across the university from 2016 to 2023 have been affected, according to the ACU, adding that it is now attempting to contact the former employees impacted.

"For current staff who are impacted, ACU will make remediation payments during February," the university said.

ACU Vice-Chancellor and President Professor Zlatko Skrbis notified employees about the situation on Wednesday.

"You deserve to be paid correctly for your work and it is our responsibility to ensure you are being paid correctly," Skrbis said in a statement. "On behalf of the university, I would like to sincerely and unequivocally apologise on behalf of the university and the Senate to every employee – past and present."

University denies wage theft

The ACU said that is has already notified the Fair Work Ombudsman over the underpayments, but it stressed that it did not commit wage theft.

"ACU is very apologetic for its error. Wage theft generally arises where there is an intentional underpayment. The university did not intend to underpay employees at all," it said.

Australia passed in December 2023 new workplace reforms that is expected to criminalise intentional wage underpayments before 2025.

According to Skrbis, ACU is committed to wage integrity in line with their legal obligations and in upholding the principles of Catholic Social Teaching.

"Our mission as a Catholic university commits us to treat every human person with dignity and respect," Skrbis said.

Union reaction to underpayments

The university has also notified the National Tertiary Education Union (NTEU) and Community and Public Sector Union over the situation.

NTEU ACU Branch President Leah Kaufmann called the situation an "extremely serious systemic wage underpayment."

"Unlike some other universities, ACU management has reported itself, apologised, committed to full back payments within 28 days, and will be providing access to support for staff identified as the victims of underpayment," Kaufmann said in a statement.

The union also welcomed the ACU's commitment to pay every casual employee at the highest rate until they are confident that their payment systems are paying staff appropriately.

"This should be a lesson to all universities: if you're not sure, pay more," Kaufmann said.

The ACU said it is already improving its payroll and information systems to guarantee that staff are being paid correctly. Additional assurance measures and payroll controls have also been implemented this year to ensure systems and processes are providing accurate pay outcomes.

"ACU is also undertaking a broader employee entitlement assessment with the support of independent expert advisors. Any underpayments identified will be promptly remediated, with interest and superannuation contributions as required," the ACU said.