On 3 July 2026, the University of NSW (UNSW) entered into an Enforceable Undertaking with the Fair Work Ombudsman after underpaying more than 33,000 current and former staff a total of over $32.7 million (including interest and superannuation).

UNSW has already rectified the large majority of the underpayments and has committed to fixing any further shortfalls identified through its ongoing review. As part of the undertaking, the university must also make a $500,000 contrition payment to Commonwealth Consolidated Revenue.

What Went Wrong

UNSW admitted to underpaying staff entitlements under its enterprise agreements between 2014 and 2023, as well as breaching record-keeping and payslip requirements.

Many of the underpaid staff were casual academic employees. They were not paid the correct rates for activities such as lectures, tutorials, demonstrations, course coordination meetings, exam supervision and marking.

Professional staff were also affected, including laboratory assistants, administrative, stores and research staff, technical officers, library staff and employees at UNSW Canberra. Underpayments to these staff included minimum rates, overtime, allowances, shift loadings and long service leave.

The underpaid employees worked across UNSW’s campuses in Sydney, Canberra and regional NSW (including Albury, Coffs Harbour, Griffith, Port Macquarie and Wagga Wagga).

Individual back-payments ranged from less than $1 to more than $398,000 (including superannuation and interest).

Key Causes

The Fair Work Ombudsman found that the main drivers of the widespread underpayments were:

• Extensive record-keeping failures
• Poor governance processes
• Payroll system deficiencies

These record-keeping issues were so significant that they hindered the investigation. The FWO previously secured a $213,120 court penalty against UNSW in December 2025 specifically for record-keeping breaches involving 63 casual academic staff.

Commitments Under the Enforceable Undertaking

In addition to full remediation and the contrition payment, UNSW has agreed to:

• Commission up to two independent compliance audits (at its own cost)
• Ensure relevant staff complete mandatory training on engaging casual and professional employees
• Report bi-monthly to the Fair Work Ombudsman on the progress of its compliance reviews
• Maintain an Employee Advocate Platform for payment claims
• Strengthen governance through its Remuneration and People Committee
• Establish a Joint Consultative Committee with employees and/or unions
• Provide details of systems and process improvements
• Inform all staff of the Enforceable Undertaking

Why This Matters

Fair Work Ombudsman Anna Booth acknowledged UNSW’s significant effort to remediate the issues while noting that improving compliance across the university sector remains a priority for the regulator.

This is now one of 13 Enforceable Undertakings entered into with Australian universities since the FWO made the sector a priority in 2022. It reinforces several important lessons for large and complex employers:

• Casual employment arrangements (especially academic casuals) require careful attention to correct rates for specific activities
• Robust record-keeping is essential — poor records can significantly complicate remediation and attract separate penalties
• Payroll systems and governance processes must be regularly reviewed and tested
• Self-reporting and cooperation remain the preferred pathway when issues are identified

Practical Takeaways for Employers

1. Regularly audit payroll systems against enterprise agreements or Awards, particularly for casual staff.
2. Maintain accurate and complete time and attendance records.
3. Ensure classifications and activity-based rates (e.g. marking, tutorials, lectures) are applied correctly.
4. Put clear channels in place for employees to raise pay concerns.
5. If underpayments are identified, act promptly and consider self-reporting.

At HR Bridge Australia, we support organisations with complex workforces — including those with significant casual or professional staff — to strengthen payroll compliance, enterprise agreement interpretation and record-keeping systems. Getting these foundations right protects both employees and the organisation.