Australia’s University of Sydney has agreed to pay over AUD 23 million (USD 14.8 million), including superannuation and interest, to more than 14,000 employees as part of an enforceable undertaking agreement with the Fair Work Ombudsman, addressing widespread underpayments across its workforce.

Under the agreement, the university must also make an AUD 500,000 (USD 320,215) contrition payment to the Commonwealth’s Consolidated Revenue Fund and implement a broad range of measures to ensure compliance with workplace laws in the future.

It follows the recent announcement of a similar enforceable undertaking agreement involving the University of Melbourne, which addressed the underpayment issue.

The University of Sydney has so far calculated a total of more than AUD 19 million (USD 12.1 million) in underpaid wages and other entitlements owed, with an additional AUD 3.2 million (USD 2.0 million) in interest and nearly AUD 950,000 (USD 608,408) in superannuation, for 14,727 current and former employees for work performed between January 2014 and June 2022.

It has so far rectified AUD 20.49 million (USD 13.1 million). Underpayments affected permanent and casual professional employees and permanent and casual academics.

Fair Work Ombudsman Anna Booth said in a press release, “The University of Sydney has acknowledged its governance failures and breaches and has responded by committing significant time and resources to put in place corrective measures that will ensure both full remediation of impacted staff and improved compliance for the future.”

“These measures will also enhance information sharing and consultation between University of Sydney employees and its governance bodies – boosting worker voice – to promote the finding and resolution of any future compliance issues within the workplace,” Booth said.

Under the terms of the agreement, the University of Sydney acknowledged it underpaid a range of entitlements owed under its previous Enterprise Agreements, including base rates of pay; minimum engagement periods for casuals; payment for leave, including leave loading; overtime, including meal allowance and TOIL (time off in lieu) entitlements; shift penalties and loadings; higher duties allowances; and marking and tutorial rates.

The university also acknowledged record-keeping breaches involving failing to make and keep records about rates of remuneration, hours of work, allowances, penalty rates or loadings, and overtime hours.