Charles Darwin University ordered to repay $4 million in unpaid wages
The university self-reported its non-compliance with Fair Work laws in 2022 and entered an enforceable undertaking with the Fair Work Ombudsman.
Charles Darwin University (CDU) has been directed to back pay more than $4 million in wages after underpaying over 800 employees between 2016 and 2022.
Key Details
- 823 current and former casual academic and professional staff across Northern Territory campuses were affected.
- A payroll review of 1,423 more employees is ongoing.
- Of the 612 payments rectified so far, the average back-pay is $1,700, with some amounts reaching up to $242,000 including superannuation and interest.
- CDU expects all payment calculations to be completed in the second half of the year.
Enforceable Undertaking Requirements
- CDU must commission two independent audits of its payroll system.
- CDU must maintain an employee complaint and review mechanism.
Statements
Australian Fair Work Ombudsman Anna Booth stated that underpayment of staff has become increasingly common in the Australian university sector. She noted that CDU and other universities had failed to invest in human resources, payroll, and time-recording systems, citing poor governance and management oversight.
National Tertiary Education Union NT secretary Rajeev Sharma said the union welcomed the undertaking but argued there should have been more urgency, noting that some staff have not yet received back-pay.
"There should have been more urgency," said NTEU NT secretary Rajeev Sharma, noting that some staff have not yet received back-pay.
Background
The underpayment issue comes as CDU recovers from an administrative error that left over 400 TAFE students unaccredited. That issue led to the resignation of former vice-chancellor Scott Bowman and TAFE chief executive Michael Hamilton. CDU also abandoned plans for a London campus after investing $2 million.