La Trobe University is set to backpay a staggering $10.77 million to over 6,700 staff members after admitting to widespread underpayment of casual academics and professional staff. The Fair Work Ombudsman (FWO) announced the Enforceable Undertaking (EU) with the university, highlighting “systemic failures” in compliance, oversight, and governance.
The underpayments, which occurred between January 2015 and December 2022, affected staff across all of La Trobe’s Victorian and Sydney campuses. The root cause? The university incorrectly applied its Enterprise Agreements, leading to casual employees being shortchanged for hours worked and minimum engagement periods.
Benchmarks Before Correct Pay
A significant portion of the underpayments stemmed from marking work, where the university used benchmarks like “words-per-hour” instead of paying for actual hours worked. This practice, along with underpayments for lecturing, tutoring, and subject coordination, resulted in individual shortfalls ranging from $2 to a whopping $91,837 (including superannuation and interest).
Accountability and Contrition
In addition to the back payments (which include $909,422 in superannuation and $556,061 in interest), La Trobe University will pay $220,000 to the Commonwealth’s Consolidated Revenue Fund as a contrition payment. They are also obligated to implement comprehensive measures to prevent future non-compliance, including:
- Updating payroll and record-keeping infrastructure.
- Establishing better centralized oversight of workplace relations processes.
- Creating a consultative body with management, employees, and the union.
- Workplace relations training for key management staff.
- Independent audits to ensure compliance.
- An employee payments complaint and review mechanism.
A Sector-Wide Problem
Fair Work Ombudsman Anna Booth acknowledged La Trobe’s cooperation and commitment to rectification but emphasized the case serves as a warning to all employers about the importance of workplace relations compliance.
“Improving universities’ workplace compliance is a priority for the Fair Work Ombudsman,” Ms. Booth stated. La Trobe University joins a growing list of universities under scrutiny for wage theft, including the University of Sydney, University of Melbourne, University of Technology Sydney, University of Newcastle, and Charles Sturt University. The FWO has also secured penalties against the University of Melbourne and is pursuing legal action against the University of NSW.
For free advice and assistance, employers and employees can call the Fair Work Infoline on 13 13 94 or visit www.fairwork.gov.au.
Sources
[1] la-trobe-university-signs-enforceable-undertaking https://www.fairwork.gov.au/newsroom/media-releases/la-trobe-university-signs-enforceable-undertaking
