Fair Work Ombudsman
Citation: FWO-2024-12-09-uni-of-melbourne-eu-media-release
At a glance
- Respondent
- The University of Melbourne
- Penalty
- $72,000,000
- Employees affected
- 25000
What happened
The University of Melbourne signed an Enforceable Undertaking with the Fair Work Ombudsman after identifying it had underpaid more than 25,000 staff a total of $72 million, including superannuation and interest. Most affected employees were casual academics. The university had been paying academics according to benchmarks, such as words-per-hour or time-per-student, rather than the actual hours worked. That meant some staff were not paid for all the time they actually spent on teaching, marking and preparation. The university self-identified the non-compliance and reported it to the regulator.
What was decided
Under the EU, the University of Melbourne will complete the $72 million in back-pay and make a $600,000 contrition payment to the Commonwealth's Consolidated Revenue Fund. It must also put in place a range of measures to prevent future non-compliance. Fair Work Ombudsman Anna Booth said the university had acknowledged governance failures and the EU would help drive cultural change across the higher education sector. The figure is remediation and contrition, not a civil penalty ordered by a court.
What it means for employers
If you use benchmarks like words-per-hour or time-per-student to pay casual academics or any other workers, those benchmarks must reflect the actual hours worked. Where they do not, the employer is underpaying and legally responsible. Universities and similar employers should audit casual pay against real timesheets, not assumed activity rates, and build systems that pay for the time actually spent on preparation, marking and teaching.
What it means for employees
If you are a casual academic or sessional tutor paid on a per-task or benchmark basis, check whether that rate covers all the hours you actually worked. The University of Melbourne accepted that benchmark pay had left some staff short. You can ask your employer for a review of your pay, or contact the Fair Work Ombudsman on 13 13 94 if you believe you were underpaid between 2014 and 2024.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections