Monash University Underpayment Scandal: $20.7 Million Back-Pay to 10,877 Staff

The Monash University Underpayment Scandal Unfolds

In a significant development for Australia's higher education sector, Monash University, one of the country's largest and most prestigious institutions, has been ordered to back-pay over $20.7 million to 10,877 current and former staff members. This underpayment scandal, primarily affecting casual academic sessional staff such as tutors and lecturers, spans an 11-year period from January 2014 to January 2025. The revelations came to light through self-reports by the university and investigations by the Fair Work Ombudsman (FWO), highlighting systemic issues in payroll processing and compliance with enterprise agreements.

The core problem revolved around incorrect payment rates for tutorials and lectures, failures to meet minimum engagement obligations, and discrepancies in timesheet descriptions that did not align with official timetables, unit guides, and handbooks. These errors led to breaches across multiple enterprise agreements governing casual staff pay. Individual underpayments varied widely, from less than $5 to over $210,000 including interest and superannuation, with averages around $5,300 in the initial disclosure and $1,000 in the later one.

This case underscores the vulnerabilities faced by casual academics, who form a substantial portion of university teaching workforces in Australia. Monash's proactive self-reporting and subsequent remediation efforts have been noted positively by regulators, but the scale of the issue has sparked broader discussions on wage compliance in higher education.

Timeline: From Initial Discovery to Full Remediation

The underpayment saga at Monash began gaining public attention in 2021 when the university conducted an internal review and self-reported non-compliance to the FWO in September of that year. This initial audit uncovered significant shortfalls, prompting immediate remediation for identified cases.

By early 2023, tensions escalated as the National Tertiary Education Union (NTEU) pursued legal action against Monash for systematic underpayments to casual teaching fellows dating back to 2016. Court battles ensued, with Monash attempting legal maneuvers to limit liabilities, but the NTEU secured key victories. In January 2025, Monash announced further underpayments totaling approximately $7.6 million from ongoing quality assurance reviews since 2016.

A landmark moment arrived on November 28, 2025, when the Federal Court ruled in favor of the NTEU, mandating back-payments for nearly a decade of wage shortfalls and a $450,000 contrition payment to the union. Culminating on December 9, 2025, Monash signed an Enforceable Undertaking with the FWO, committing to pay $20.7 million—comprising $15 million in wages, $3.8 million in interest, and $1.9 million in superannuation—across all 10 faculties.

To date, over $20.5 million has been disbursed to more than 10,400 affected employees, with remaining cases being finalized.

Root Causes: Why Did Underpayments Occur?

At the heart of the Monash underpayment scandal were procedural and systemic failures in how casual staff hours and activities were recorded and remunerated. Casual academic sessional staff—those engaged on a per-hour or per-session basis without ongoing employment contracts—were often paid incorrect rates for 'original' versus 'repeat' tutorials. For instance, enterprise agreements stipulate higher rates for first-time delivery, but timesheets frequently misclassified activities.

Another key issue was the failure to honor minimum engagement periods, where staff must be paid for a set minimum time even if the actual work was shorter. Inconsistencies arose because timesheet descriptions did not match core university documents like timetables and unit handbooks, leading to automated payroll systems applying wrong pay scales.

These problems were exacerbated across faculties with high casual workloads, such as Information Technology (26% of cases), Medicine, Nursing and Health Sciences (26%), Engineering (18%), and Science (15%). Payroll errors, rather than intentional misconduct, were cited, but regulators emphasized the need for robust compliance checks to prevent prolonged issues.

Who Was Impacted? A Profile of Affected Staff

The 10,877 underpaid workers were predominantly casual academic sessional staff, including tutors, lecturers, and a smaller number of casual research assistants. These roles are critical to delivering undergraduate teaching at Monash, which has over 86,000 students across 10 campuses in Melbourne and regionally.

Casual staff often juggle multiple universities to make ends meet, making even small underpayments cumulatively devastating. The scandal affected employees across all faculties, with disproportionate impacts in STEM fields where tutorial loads are heavy. Former staff, many untraceable, had portions paid into the FWO's Unclaimed Monies Fund.

For many, this represented lost superannuation contributions essential for retirement, compounding financial stress in a sector where casualization has risen to over 50% of academic roles in Australia.

• High-impact faculties: IT, Medicine/Health, Engineering
• Average claim: $1,000–$5,300
• Extreme cases: Up to $210,000

If you're a casual academic, check your entitlements via university pay review portals or higher ed career advice resources.

The NTEU's Pivotal Role in Securing Justice

The National Tertiary Education Union (NTEU), representing university staff nationwide, was instrumental in exposing and resolving the Monash underpayments. Starting with allegations in 2023, the NTEU filed Federal Court proceedings against Monash for failing to pay casual academics correctly under enterprise agreements.

Key wins included a July 2025 ruling affirming breaches and the November 2025 arbitration ordering millions in back-pay for teaching fellows from 2016–2024, plus $450,000 to the union for advocacy costs. NTEU Monash Branch President Dr. Ben Eltham highlighted the case as a precedent against wage theft.

The union's efforts extended to pushing for independent audits and transparency, benefiting thousands beyond litigation. This victory aligns with NTEU's broader campaign revealing $159 million in wage theft across Australian universities affecting 97,000 staff.

Monash's Response: Self-Reporting and Swift Action

Monash University emphasized its voluntary disclosures—first in 2021 and again in 2024—as evidence of good faith. The institution apologized unreservedly, attributing issues to inadvertent payroll misclassifications rather than deliberate theft.

Immediate steps included notifying staff, implementing a new time and attendance system, and launching quality assurance reviews. By the EU signing, most funds were already disbursed. Monash committed to cultural change via training for timesheet approvers and streamlined processes like a teaching calendar tool.

A spokesperson stated: "Monash identified and voluntarily disclosed incorrect payment issues to the Fair Work Ombudsman and will continue to work with the FWO." For more on university employment, visit higher ed jobs at AcademicJobs.com.

Understanding the Enforceable Undertaking

An Enforceable Undertaking (EU) is a legally binding agreement between the FWO and an employer admitting contraventions and outlining rectification steps, avoiding court but enforceable like a court order. For Monash, it included:

• Full back-payment of $20.7 million
• $350,000 contrition payment to the government
• Tripartite Compliance Reference Group with staff and NTEU
• Independent compliance audit
• All-staff training and notifications
• Ongoing FWO reporting via Audit and Risk Committee

FWO's Anna Booth praised Monash's cooperation, noting it as a model for sector improvement. Nine other Australian universities have similar EUs since 2022.
Full FWO media release

Sector-Wide Crisis: Underpayments in Australian Higher Education

Monash's case is part of a national epidemic. NTEU data shows $159 million stolen from 97,000 staff across unis, with Victorian institutions owing $50 million. Other examples:

• University of Melbourne: $72 million repayment
• UNSW: $70.8 million liabilities
• University of Sydney: $23 million
• University of Wollongong: $6.6 million

Casualization—over 50% of teaching staff—drives insecure work and compliance risks. FWO prioritizes unis, securing EUs with QUT, Griffith, La Trobe, and more. Victoria leads with systemic issues tied to high casual reliance.

This trend prompts calls for federal inquiries and better enterprise agreement enforcement.

Human and Reputational Impacts

Beyond dollars, underpayments eroded trust among staff facing financial hardship amid rising living costs. Casual academics, often early-career researchers, lost super for retirement and faced delayed payments stretching years.

Monash's reputation as a Group of Eight university took a hit, though swift remediation mitigated damage. Student education quality remained unaffected, but it fueled debates on sustainable staffing models. Stakeholders urge shifting from casual-heavy to secure roles.

Rate your experiences with university employers at Rate My Professor or explore stable positions via university jobs.

Lessons and Preventive Measures for Universities

Key takeaways include automating compliance checks, standardizing timesheet protocols, and regular audits. Monash's Compliance Reference Group exemplifies tripartite collaboration.

Universities should:

• Train managers on enterprise agreements
• Align all docs (timetables, handbooks)
• Self-audit proactively
• Engage unions early

Broader solutions: Legislate casual conversion paths, cap casual percentages, and criminalize intentional wage theft. Aspiring lecturers can prepare via advice on becoming a university lecturer.

Actionable Advice for Casual Academics

If you suspect underpayment:

1. Review payslips against enterprise agreements
2. Contact university pay review teams (e.g., payreview@monash.edu)
3. Lodge with FWO or NTEU
4. Track minimum engagements and classifications

Build resilience by diversifying income streams and upskilling for permanent roles. Check faculty jobs and lecturer jobs for opportunities.

Future Outlook: Towards Compliant Higher Education

With remediation underway, Monash leads by example in compliance overhaul. The FWO anticipates improved sector standards, potentially reducing casual vulnerabilities. Policymakers may introduce reforms post-2026 reviews.

For employers, this is a call to invest in payroll tech and culture. Job seekers, stay vigilant and informed. Discover more career tools at higher ed career advice, rate my professor, and higher ed jobs. Post a vacancy at post a job to attract top talent.