Back payments totaling nearly $260 million have been recovered for more than 122,000 higher education workers nationwide following underpayment issues at the University of Queensland (UQ), officials announced on Tuesday. The figure includes a recent acknowledgment by UQ that over 16,000 staff had been underpaid approximately $11 million, including interest and superannuation.
The Fair Work Ombudsman (FWO) reported that between July 2019 and March 31, 2026, a cumulative total of $259 million in back payments had been secured for higher education employees, with $67.9 million refunded in the last financial year alone. These funds cover underpayments across numerous universities, with UQ accounting for a significant portion.
UQ Vice-Chancellor Deborah Terry issued a formal apology to current and former staff affected by the underpayments. The shortfalls were discovered after the university initiated an external review of its wage compliance practices and subsequently entered into an enforceable undertaking with the FWO. UQ also agreed to make a $175,000 contrition payment to the Commonwealth’s Consolidated Revenue Fund.
The underpayments at UQ spanned from 2017 to 2026 and involved academic and professional employees across several campuses, including St Lucia, Herston, Dutton Park, and Gatton in Brisbane. Faculty members within Health, Medicine and Behavioural Science represented just over a quarter of those impacted.
According to the university, errors originated from payroll system misconfigurations, clerical mistakes, and other administrative oversights that led to non-compliance with enterprise agreements from 2014, 2018, and 2021. Specific issues involved misapplication of minimum engagement periods, incorrect casual pay codes, base rates for some casual employees, omission of relevant PhD qualifications in pay determinations, and failure to account for extra or overtime hours.
The amounts reimbursed varied widely, with the highest payment totaling $41,643, inclusive of interest and superannuation, and the lowest underpayment valued at less than one dollar. On average, affected employees received $564 in back wages.
The total back payment amount for UQ breaks down into roughly $9.2 million in wages, $427,000 in interest, $1.02 million in superannuation contributions, and about $315,000 in interest on those contributions. To date, UQ has resolved the majority of these claims, paying out over $9.6 million to more than 13,500 current and former staff. The FWO overseeing the enforceable undertaking has mandated completion of all outstanding payments.
The National Tertiary Education Union (NTEU) has highlighted a higher sector-wide estimate of $315.7 million in underpayments affecting 17,611 staff members. NTEU President Alison Barnes described the widespread wage shortfalls across Australian universities as “enraging,” emphasizing the significant hardship experienced by affected workers.
Ms. Terry reaffirmed the university’s commitment to resolving the matter, stating her sincere apologies to those impacted and underscoring efforts to rectify past payroll failures and improve compliance going forward.