University of Sydney to Repay $23 Million to Underpaid Staff

Students walk around Sydney University in Sydney, Australia, on April 6, 2016. Brendon Thorne/Getty Images

The University of Sydney has committed to paying over $23 million, including superannuation and interest, to more than 14,000 underpaid staff.

This follows an Enforceable Undertaking (EU) with the Fair Work Ombudsman (FWO).

The settlement includes a $500,000 contrition payment— a formal penalty paid to acknowledge wrongdoing—to the Commonwealth’s Consolidated Revenue Fund, and the implementation of extensive reforms to ensure workplace compliance.

“The University of Sydney has acknowledged its governance failures and breaches, and has responded by committing significant time and resources to put in place corrective measures that will ensure both full remediation of impacted staff and improved compliance for the future,” said Fair Work Ombudsman Commissioner Anna Booth.

This development comes just days after the University of Melbourne agreed to repay $72 million to over 25,000 staff for underpayments identified between 2014 and 2024.

Both cases reflect systemic issues within the higher education sector.

Impact on Employees

The University of Sydney’s investigation revealed underpayments totalling $19 million in wages underpayments, $3.2 million in interest, and nearly $950,000 in superannuation.

These underpayments affected 14,727 permanent and casual staff, including academics and professional employees, for work conducted between January 2014 and June 2022, and were largely relate to incorrect sessional and tutorial rates and unpaid time for marking.

The University has so far repaid $20.49 million.

The University apologised for the breaches, stating: “The University apologises unreservedly for the contraventions, and we are taking all necessary steps to remedy the contraventions, including by continuing to undertake the Casual Academic Review in remaining priority schools and faculties.”

Measures for Compliance

Under the EU, the University has been asked to implement several measures to prevent future underpayments.

These include finalising the Casual Academic Review within 18 months and providing regular updates to the FWO. The University is also required to commission at least one independent audit at its own cost to ensure compliance with all employee entitlements.

“The Fair Work Ombudsman will use EUs to oversee employers completing large-scale remediation reviews, where those employers are willing to be open with their approach and we can ensure that it is robust and lawful,” Booth said.

In addition to rectifying the small remaining part of the confirmed underpayments to date, the University has also committed to complete the ongoing Casual Academic Review and to rectify any further underpayments found.

Investigations and Findings

The underpayments were attributed to systemic failures in compliance, operational controls, and governance processes.

Reviews of the University of Sydney Enterprise Agreements for 2013-2017 and 2018-2021 revealed violations of entitlements such as minimum engagement periods, overtime, allowances, and public holiday penalty rates.

Record-keeping failures further compounded the issue.

The Casual Academic Review, which began in 2020, uncovered significant issues in schools including Mathematics and Statistics, Psychology, Engineering, and Education and Social Work.