QUT Enters Enforceable Undertaking After $1.9 Million in Underpayments

Queensland University of Technology (QUT) has entered into an Enforceable Undertaking (EU) with the Fair Work Ombudsman (FWO) after identifying and rectifying widespread underpayments affecting hundreds of staff. The university has already paid more than $1.9 million, including wages, interest and superannuation, to 433 underpaid employees.

As part of the EU, QUT has also agreed to complete a Comprehensive External Review (CER) to assess additional workers and address any further underpayments identified. In addition, the university will make a $250,000 contrition payment and implement a broad suite of actions designed to strengthen long-term compliance with workplace laws.

Underpaid employees worked across QUT’s Gardens Point and Kelvin Grove campuses in Brisbane, spanning the university’s five faculties. Most affected employees were professional services staff, including administration officers, research assistants and IT event staff. Of the 433 impacted employees:

• 366 were full-time or part-time workers
• The remainder were casuals
• Individual back-payments ranged from less than $10 to more than $78,000

The underpayments occurred under QUT’s 2014, 2018 and 2022 Professional Staff Enterprise Agreements.

According to the FWO, most underpayments stemmed from QUT’s failure to correctly apply entitlements such as:

• Overtime
• Time off in lieu of overtime
• Minimum rates for ordinary hours
• Meal allowances
• Casual loading
• Minimum engagement period for casual professional employees

The issues arose from poor governance processes and fundamental payroll system errors, resulting in breaches of the university’s own enterprise agreements.

QUT first became aware of the underpayments in 2019 and began self-reporting its compliance audits to the FWO in 2021.

The payments QUT has made to date include:

• More than $1.748 million in wages and entitlements
• More than $143,000 in interest
• More than $24,000 in superannuation and interest on superannuation

Under the EU, QUT has commissioned an external auditor to conduct the CER. This review will cover entitlements applying to:

• Casual, fixed-term and ongoing professional employees
• Sessional academic employees
• Educators in QUT College/International College

The review period spans from the commencement in 2019 of both the Professional and Academic 2018 Enterprise Agreements through to the start date of the EU.

Fair Work Ombudsman Anna Booth stated that the EU was appropriate given QUT’s cooperation and commitment to rectification.

She noted that the case highlights the “significant long-running problems” that occur when employers lack appropriate checks and balances. The commitments in the EU are expected to “help drive cultural change across the university,” including through education campaigns, stronger governance, and standing agenda items for compliance oversight.

Improving workplace compliance within universities remains a priority for the FWO, which continues to work with leadership teams across the sector.

Under the EU, QUT must:

• Conduct the CER using FWO-approved methodology
• Back pay any additional underpayments identified
• Develop and implement a new timesheet system
• Perform proactive sample checks relating entitlements to payments
• Embed compliance monitoring within governance structures, including at Council and committee meetings
• Notify employees of the EU and CER
• Promote workplace relations compliance through ongoing communication
• Establish a complaints and review mechanism and dedicated employee hotline
• Provide the FWO with evidence of all back payments
• Provide six monthly progress updates on the CER and systems implementation
• Report outcomes from the complaints and review mechanism

The $250,000 contrition payment will be made to the Cleaning Accountability Framework, a not for profit organisation that supports fair working conditions for cleaners.

Since declaring systemic non-compliance in the university sector a priority in 2022, the FWO has entered into further Enforceable Undertakings with:

• University of Wollongong
• La Trobe University
• University of Sydney
• University of Melbourne
• University of Technology Sydney
• University of Newcastle
• Charles Sturt University
• Griffith University

The FWO has also secured court penalties against the University of Melbourne and commenced legal action against the University of NSW.