University enters Enforceable Undertaking with Fair Work Ombudsman following underpayments
Griffith University is backpaying $8.34 million to more than 5,400 underpaid current and former staff as part of an agreement with the Fair Work Ombudsman (FWO).
The backpayments, of between less than $1 and more than $92,400, relate to underpayments under the university's enterprise agreements and two awards between July 2015 and June 2024 and include interest and superannuation. The uni will also make a contrition payment of $175,000.
A total of 5,457 current and former employees were impacted by the underpayment. So far the university has repaid $5.83 million, excluding superannuation and interest, to 5,226 employees, according to the FWO.
The FWO said the university failed to pay correct rates for initial and repeat tutorials and other academic activities, as well as PhD qualification rates, subject coordination rates, initial session rates, proctor rates, and research assistant rates.
Causes of the underpayments included including insufficient training among course convenors and school administrators, insufficient data collection in onboarding processes, insufficient or non-existent payroll and data review processes, lack of automation allowing for human error, as well as deficiencies in various payroll systems.
“The matter serves as a warning of the significant long-running problems that can result from an employer failing to have appropriate checks and balances to ensure workplace compliance," Fair Work Ombudsman Ms Anna Booth said in a statement.
"We expect universities to meet their legal obligations under their own enterprise agreements and underlying awards.”
The university self-reported non-compliance to the Fair Work Ombudsman in March 2022 and Ms Booth said it deserved credit for acknowledging its breaches and the underlying issues, and committing significant time and resources to put in place corrective measures.
A Griffith University spokesperson said the university discovered the underpayments during a review of payroll processes in 2022.
"This is a situation we apologise for and regret the impact it has caused to affected staff," they said.
"We proactively notified the Fair Work Ombudsman and are currently working to rectify the issue. Most importantly, all affected current and former staff who can be contacted have been repaid with interest."
The backpayment consists of underpaid wages exceeding $5.95 million, interest of more than $1.55 million, as well as superannuation of about $830,000.
Staff affected include current and former full-time, part-time, and casual academic, professional, support and fitness staff, and proctors.
Griffith University also committed to updating its payroll and record-keeping systems and giving FWO information about them to ensure future compliance, the FWO said.
It also committed to ensuring relevant staff complete additional training regarding fair work obligations, among other measures to ensure compliance with workplace laws.
"Improving universities' workplace compliance is a priority for the Fair Work Ombudsman. We look forward to working with the leadership teams at universities nationally to assist them to do the sustained, smart work required to ensure full compliance with workplace laws," Booth said.
