Monash University Underpayments Scandal: $21 Million Back-Pay Ordered to Over 10,000 Staff

The Roots of the Monash University Underpayments Scandal

Casual academics at Monash University, one of Australia's leading research institutions located primarily in Melbourne, Victoria, have long formed the backbone of teaching support in higher education. These sessionally employed Teaching Associates, often PhD candidates or early-career researchers, handle tutorials, marking, and student consultations. However, systemic issues in payroll practices led to widespread underpayments, sparking a prolonged legal battle that culminated in a major back-pay order.

The scandal first surfaced publicly around 2021 when the National Tertiary Education Union (NTEU), representing academic staff, raised alarms over deliberate shortfalls in wages. Monash, with its 10 campuses and tens of thousands of students, relied heavily on casual staff—comprising up to 50% of teaching workforce in some faculties—making the scale significant. Underpayments stemmed from misclassification of work hours, particularly time spent on student consultations outside formal tutorial slots, and inadequate marking rates that didn't reflect actual effort required.

This wasn't isolated; it reflected deeper challenges in Australian higher education where enterprise bargaining agreements (EBAs)—negotiated contracts between universities and staff under the Fair Work Act 2009—often ambiguously defined casual loading (typically 25% extra on base rates to compensate for no leave entitlements). Casual academics, defined fully as employees engaged for short-term or irregular duties without ongoing commitment, were particularly vulnerable due to precarious contracts renewed semester-by-semester.

Timeline of Key Events in the Wage Theft Saga

Understanding the progression requires a step-by-step look at how the issue escalated from internal audits to courtroom showdowns.

• 2014-2020: Underpayments occur primarily for casual marking and tutorial-related work under Monash's 2014 and 2019 EBAs.
• September 2021: Monash admits initial $8.6 million shortfall to over 2,000 casual teachers, later revised to $10 million including interest.
• January 2025: Fresh admission of $7.6 million withheld since 2016 for additional breaches.
• July 2024: Federal Court Justice Snaden rules Monash breached EBAs and Fair Work Act by not paying separately for student consultations and failing record-keeping.
• November 2025: Monash's attempt to retrospectively vary EBA dismissed by Fair Work Commission (FWC) on appeal.
• 28 November 2025: Landmark settlement announced for eight-figure remediation.
• December 2025: Enforceable Undertaking (EU) with Fair Work Ombudsman (FWO) commits $20.7 million back-pay.

This chronology highlights persistent resistance from the university, prolonging resolution for affected staff.

Details of the Underpaid Work and Payroll Failures

At the core were two main issues: student consultations and assessment marking. Student consultations—mandatory one-on-one or small-group meetings to provide feedback, clarify concepts, or discuss progress—were required by course coordinators but not compensated separately. Monash claimed these fell under hourly tutorial rates (around AUD 70-90 per hour depending on level), but the court determined EBAs mandated distinct payment.

Marking underpayments arose from fixed rates per script (e.g., AUD 10-15 per 1,000 words) that underestimated time for detailed feedback, especially in humanities where essays averaged 2,000 words. Step-by-step process: (1) Tutors receive unmarked work; (2) Allocate 20-40 minutes per script based on complexity; (3) Provide individualized feedback; (4) Enter grades into systems like Moodle. Actual time often doubled rates, leading to effective hourly pay below minimum wage.

Affected roles included Level A Teaching Associates (entry-level) and some Level B, spanning faculties like Arts, Business, and Science. Cultural context in Australia: High casualization (60-70% teaching by casuals nationally) stems from post-2012 funding cuts via the demand-driven system, pressuring unis to minimize fixed costs.

Federal Court Rulings: Breaches Confirmed

In a pivotal July 2024 judgment, Justice Snaden lambasted Monash for interpreting EBAs in a way that "defied commercial common sense." The ruling affirmed contraventions of section 323 (payment obligations) and section 535 (records) of the Fair Work Act. Lead plaintiffs Dr. James Kent and Mr. Michael Ciaravolo received individual awards: Kent $44,007 plus interest/super; Ciaravolo $5,429 plus more via remediation.

Monash's failed FWC bid to rewrite EBA terms post-ruling underscored desperation to avoid liability. NTEU Victorian Secretary Sarah Roberts noted, "Monash fought us every step—even trying to change its own agreement." This victory set precedents for similar claims at other unis.

NTEU's detailed case summary provides primary source insights.

The 2025 Settlement: $20.7 Million Back-Pay Ordered

Settlement terms: Monash commits $20.7 million total—covering wages, interest (at FWO prescribed rates ~4-6%), and superannuation—to over 10,000 current/former staff across campuses. Includes $450,000 "contrition" payment to NTEU for sector-wide advocacy, plus independent oversight with monthly progress reports.

Remediation program targets 9.5 years of consultations from 2016. Breakdown estimate: ~$10m principal wages, $7m interest/super, extras. Staff identification via records audit; claims process simplified for casuals with short employment stints.

Monash's Response and Payroll Challenges

Monash maintained underpayments were "unintentional errors" from complex EBAs and high casual volumes (thousands processed quarterly). Spokesperson: "We have paid back $8.1m already and are committed to remediation." Critics argue legal maneuvers indicate otherwise.

Payroll processes: Automated systems like Chris21 struggled with variable hours, manual overrides for consultations missed. Solutions implemented: Enhanced training, EBA clarifications in 2024 agreement.

Sector-Wide Wage Theft Crisis in Australian Universities

Monash joins a national tally exceeding $284 million confirmed underpayments + $168 million provisions, affecting 142,000 workers per NTEU 2026 data. Examples: University of Melbourne $72m to 25,000 staff (2024 EU); Tasmania, QUT recent breaches.

• Causes: Casual-heavy models (50-70% teaching), ambiguous EBAs, post-COVID funding squeezes.
• Risks: FWO prosecutions, reputational damage, union campaigns.
• Comparisons: Melbourne focused marking; Monash consultations.

Australian Higher Education Industrial Association blames "complex rules," calls for EBA simplification.

Human Impact on Casual Academics

Thousands faced financial strain: Delayed PhD completions, side gigs, mental health toll. Real case: A Monash tutor lost ~$20k over 3 years, equating 10% income shortfall. Broader: Perpetuates inequality, deters domestic talent amid international student reliance (60% revenue).

Stakeholder views: NTEU President Dr. Alison Barnes: "Wage theft indefensible while VCs earn millions."

NTEU's Pivotal Role and Future Advocacy

NTEU filed proceedings, negotiated settlements, secured contrition funds. Demands: Federal inquiry into uni governance. Strengthens cases at other institutions.

For academics: Join unions for protection. Explore stable paths via lecturer jobs or career advice.

Proposed Reforms and Prevention Strategies

Solutions: Transparent time-tracking apps, fixed consultation allowances in EBAs, FWO audits. Actionable insights: (1) Log all hours meticulously; (2) Review payslips quarterly; (3) Engage NTEU early.

2024 Monash EBA improvements: Explicit consultation clauses. National push for Secure Jobs, Better Pay reforms.

Implications for Higher Education Careers in Australia

This scandal underscores casualization risks, urging diversification: Postdocs, research assistants via Australian jobs. Positive: Heightened scrutiny improves compliance, benefits job seekers.

Future outlook: With Job-ready Graduates review ongoing, expect tighter wage laws. Position yourself strongly—check professor salaries, higher ed jobs, or rate your professors for informed choices.

In summary, Monash's resolution marks progress, but vigilance remains key in Australian higher education.