On March 6, 2025, La Trobe University made significant headlines by signing an Enforceable Undertaking (EU) with the Fair Work Ombudsman to address substantial payroll compliance issues affecting over 6,700 employees. This undertaking arises from a thorough investigation that uncovered systemic failures in the university’s payroll practices, which led to underpayments totalling more than $10.77 million across its various campuses.
The Extent of the Underpayments
The investigation revealed that a significant number of underpaid employees were casual academics and professional staff engaged across La Trobe’s ten schools, including those at its campuses in Victoria and Sydney. Many of these individuals, who performed various essential roles, were shortchanged for work performed between January 2015 and December 2022, raising serious concerns about the university’s adherence to workplace laws.
The primary causes of the underpayments included:
- Incorrect application of Enterprise Agreements resulting in insufficient payment for hours worked.
- Inaccurate payment practices are based on arbitrary benchmarks for workloads, rather than actual hours logged.
- Poor record-keeping that failed to accurately track hours worked by casual staff, particularly in roles such as tutoring, lecturing, and subject coordination.
Reported individual underpayments ranged dramatically, from as little as $2 to as much as $91,837, highlighting serious discrepancies in the university’s payroll system.
Immediate Financial and Legislative Steps
As part of the EU, La Trobe University has committed to back-paying affected employees in full, along with an additional payment of over $900,000 in superannuation contributions and more than $556,000 in interest. This concerted effort aims to restore the financial well-being of those impacted, and it’s commendable that the university has begun to take ownership of these compliance failures.
In addition, the university will make a contrition payment of $220,000 to the Commonwealth’s Consolidated Revenue Fund as part of a broader commitment to rectify these issues. These financial measures reflect the seriousness with which La Trobe is taking this situation and its willingness to invest in improving compliance moving forward.
A Commitment to Change
Fair Work Ombudsman Anna Booth has highlighted the importance of the commitments secured under the Enforceable Undertaking, including:
- Updating payroll and record-keeping infrastructure.
- Establishing better-centralized oversight of workplace relations processes.
- Creating a consultative body involving university management, employees, and union representatives.
- Implementing training for management staff on workplace relations.
- Commissioning independent audits to ensure compliance with employee entitlements.
These steps are crucial for fostering a culture of accountability and transparency within La Trobe University. By actively engaging with staff and union representatives, the administration aims to build strong checks and balances to prevent future payroll issues.
A Broader Context
This situation at La Trobe University is emblematic of challenges faced by several universities across Australia. In recent years, the Fair Work Ombudsman has acted against multiple institutions, highlighting an industry-wide need for enhanced compliance with workplace laws. La Trobe’s commitments will serve not only to remedy current issues but also to set a precedent for other universities to follow.
Conclusion
The decision by La Trobe University to enter an Enforceable Undertaking is a pivotal step in addressing the payroll system’s failures and advocating for the rights of its staff. It reflects an acknowledgment of past mistakes and a resolve to create a more just and compliant workplace environment for all employees. As the university navigates this challenge, the academic community will be watching its progress, hoping that it can restore trust and become a model for compliance in the sector.