Organization enters 'most comprehensive' EU by Australian university with FWO
The University of Melbourne is back-paying thousands of underpaid employees $72 million in payments as part of the "most comprehensive" Enforceable Undertaking (EU) entered into by an Australian university.
The university will be repaying more than 25,000 staff who were underpaid a range of entitlements, including minimum wages, minimum engagement entitlements, casual sessional teaching and casual non-sessional activities rates, shift loadings, and overtime entitlements.
It will also be paying a $600,000 contrition payment to the Commonwealth Consolidated Revenue Fund, according to the Fair Work Ombudsman (FWO).
"This Enforceable Undertaking is the most comprehensive entered into by any university, and provides an example for the sector (and large employers generally) on what it means to turn practices around with a long-term commitment to embedding a worker voice mechanism to respond to feedback and to meeting all workers' legal entitlements," said Fair Work Ombudsman Anna Booth in a statement.
"In this particular instance, it is also appropriate that the university has agreed to make a contrition payment."
A total of 25,576 current and former employees between 2014 and 2024 were underpaid a total of $54.05 million, according to the university's remediation programme.
These employees include six staff members who were underpaid more than $100,000, with most underpaid less than $5,000.
Most of the underpayments affected casual academic and professional staff across all faculties and campuses at the University, as well as some fixed-term and continuing academic and professional staff, and some trades and services employees.
A large majority of the underpayments, including interest, superannuation, and interest on superannuation, have been back-paid by the university.
In a statement, the university said the final payments are expected to be made in the first half of 2025.
"The University of Melbourne now accepts that it was unlawful that for many years, its casual academics adhered to 'benchmarks' which were inadequate and resulted in some employees not being paid for all hours worked," Booth said.
These "benchmarks" included paying employees words-per-hour or time-per-student, instead of the actual hours they had worked, according to the FWO.
Meanwhile, the FWO said it is also discontinuing the legal action it commenced last year against the university for alleged contraventions involving 14 casual academics.
The discontinuation of the legal case is part of the outcomes achieved under the EU, where the university admitted to underpaying and failing to make and keep records for the involved staff.
"The university is pleased that the FWO has now dismissed the prosecution brought against the University, including the allegations that we knowingly underpaid staff and made and kept 'false and misleading' records," said Professor Nicola Phillips, University of Melbourne Interim Vice-Chancellor, in a statement.
According to Phillips, other commitments in the EU include the university's continuing leadership role in employment compliance and improvements to systems and processes.
"The university again expresses its sincere regret and reiterates its apologies to affected staff members," Phillips said.
