Monash University to Back-Pay $20.7 Million to Over 10,000 Underpaid Staff

Monash University's Major Backpay Commitment Emerges from Years of Scrutiny

In a significant development for Australia's higher education sector, Monash University has committed to repaying more than $20.7 million to over 10,000 underpaid staff members. This remediation package, finalized through an Enforceable Undertaking with the Fair Work Ombudsman in December 2025, addresses widespread underpayments affecting casual academic sessional staff and research assistants across all 10 faculties over an 11-year period from 2014 to 2025. The total includes nearly $15 million in unpaid wages, $3.8 million in interest, and $1.9 million in superannuation contributions, marking one of the largest such resolutions in recent university history.

The issue came to light through the university's own tutorial payments review in 2021, leading to voluntary self-reporting to the Fair Work Ombudsman. Subsequent reviews uncovered further discrepancies, culminating in a comprehensive settlement that underscores the complexities of paying casual educators under enterprise agreements. While Monash has already disbursed around $20.5 million to more than 10,400 employees, the undertaking ensures full rectification for the remaining cases, including payments to uncontacted former staff via the FWO's Unclaimed Monies Fund.

Unpacking the Causes: Timesheets, Rates, and Enterprise Agreement Breaches

The underpayments at Monash stemmed primarily from systemic errors in how work activities were recorded and compensated. Casual academic staff, who form a substantial portion of the teaching workforce in Australian universities—often up to 70% in some disciplines—were most impacted. Key problems included incorrect activity descriptions on timesheets that did not match core documents like timetables, unit guides, and handbooks. This led to failures in paying correct rates for original and repeat tutorials, not meeting minimum engagement periods (the guaranteed minimum time payment for scheduled activities), and underpaying for original lectures.

Individual shortfalls varied dramatically, from under $5 to over $210,000 including interest and super, with averages around $5,300 from the initial 2021 disclosure and $1,000 from the 2024 review. These breaches violated multiple Monash University Enterprise Agreements, which outline precise payment structures for sessional teaching roles. For context, casual Teaching Associates, responsible for tutorials and student consultations, were often paid flat tutorial rates that did not account for additional unpaid preparation or consultation time, a common pain point amplified by the National Tertiary Education Union (NTEU).

The Pivotal Role of the NTEU in Securing Justice for Casual Academics

The NTEU played a crucial role in bringing the issue to a head, launching Federal Court proceedings in September 2022 on behalf of casual Teaching Associates underpaid for student consultations. The union argued these were distinct from tutorial duties and not covered by standard rates, a position vindicated by Justice Snaden in July 2024. The court found breaches of the 2014 and 2019 enterprise agreements and the Fair Work Act, including poor record-keeping.

Monash's attempts to retrospectively amend its enterprise agreement via the Fair Work Commission were rejected both at first instance and on appeal. The resulting out-of-court settlement in November 2025 committed the university to an eight-figure backpay program for nearly a decade of shortfalls, plus $450,000 in contrition to the NTEU to support ongoing wage justice campaigns. NTEU Branch President Dr. Kris Eltham hailed it as a 'massive win,' highlighting how collective action from members propelled the outcome.

• Lead applicants Dr. James Kent and Mr. Michael Ciaravolo received court-ordered compensation of $44,007 and $5,429 respectively, plus extras.
• Thousands of casuals eligible for remediation spanning 2016-2025.
• NTEU info sessions aided claims, urging non-members to join for representation.

Fair Work Ombudsman's Enforceable Undertaking: Key Commitments and Oversight

The Fair Work Ombudsman (FWO), Australia's workplace regulator, formalized the resolution via an Enforceable Undertaking (EU) on December 9, 2025. This legally binding agreement requires Monash to complete all outstanding payments, establish a tripartite Compliance Reference Group involving management, staff, and unions, and implement robust fixes. FWO Acting Director Anna Booth praised Monash for self-reporting but warned of 'significant long-running problems' from inadequate checks.

Additional measures include all-staff notifications, training for timesheet approvers on casual pay under industrial instruments, an independent compliance audit, a complaints mechanism, and reporting on new tools like streamlined timesheets and teaching calendars. A $350,000 contrition payment to the Commonwealth underscores accountability without court-imposed penalties. The EU prioritizes cultural change, with oversight by Monash's Audit and Risk Committee.Read the full FWO media release.

Monash's Perspective: Apology, Remediation, and Systemic Improvements

Monash Provost Professor Susan Elliott AM described the EU as a 'milestone,' emphasizing voluntary disclosures in 2021 and 2024 following internal reviews. The university apologized 'unreservedly' for 'inadvertent' errors, attributing them to tutorial payment and quality assurance processes. Already, payments with interest and super have reached most affected staff, with uncontacted ex-employees directed to FWO funds.

Future-focused changes include a new time and attendance system, ongoing reviews, and EU-mandated enhancements. Monash welcomes union collaboration via the Reference Group to prevent recurrence, positioning itself as proactive amid sector scrutiny.Monash official statement.

Human Impact: Stories and Struggles of Underpaid University Staff

For casual academics, often early-career researchers or PhD students supplementing income, underpayments exacerbated financial precarity. NTEU reports highlight tutors instructed to 'skim read' essays to fit impossible marking quotas, or rostered for two hours but paid 90 minutes. Affected staff faced delayed mortgages, student debt burdens, and eroded trust in institutions. One anonymous tutor shared with media: 'It was systemic—preparation time unpaid, consultations ignored.'

Average shortfalls, though seemingly modest ($1,000-$5,300), compounded for multi-year workers, especially amid Australia's rising cost of living. The remediation offers relief, but emotional toll lingers, prompting calls for permanent roles over precarious casualization.

Australia's University Wage Theft Crisis: Monash in Context

Monash's case is emblematic of a national scandal. NTEU data tallies $284 million in confirmed underpayments across 32 institutions, affecting 142,000 staff, with $168 million provisioned—totaling over $450 million. Recent examples: University of Wollongong ($6.6m to thousands), Griffith University ($8.34m to 5,457), Adelaide ($1.25m to 838). Root causes mirror Monash: complex enterprise agreements, high casual reliance (60%+ teaching), piece-rate marking flaws.

• FWO prioritizes unis for 'sustained, smart' compliance.
• Sector repaid ~$100m by 2023; pace accelerated post-COVID.
• Unions decry 'built-in' theft propping insecure work models.

Explore career advice for research assistants navigating these challenges.

Lessons Learned: Reforms to Prevent Future Underpayments

Experts advocate simplified pay models, AI-assisted timesheet validation, and minimum staffing ratios. FWO stresses 'checks and balances'; Monash's tools—teaching calendars, training—set precedents. Broader solutions: Legislate casual conversion paths, standardize agreements, fund payroll audits.

Stakeholders agree: Cultural shift needed, valuing educators beyond cost-cutting. Universities investing in compliance gain talent retention; casuals seek transparency.NTEU Wage Justice resources.

Future Outlook: Compliance Culture and Sector Recovery

With EU monitoring, Monash eyes full compliance by mid-2026, potentially inspiring peers. National progress: FWO collaborations, union wins reducing theft. For staff, backpay aids stability; sector may see wage justice as recruitment edge.

Aspiring academics, bolster your prospects via higher ed jobs and rate my professor insights. Institutions prioritizing fair pay attract top talent.

Photo by Bangyu Wang on Unsplash

What Underpaid Staff Should Do Next and How to Protect Your Rights

If potentially affected, check NTEU or Monash communications; claims ongoing. General tips:

• Track hours meticulously against agreements.
• Join unions for representation.
• Report suspicions to FWO anonymously.
• Use payroll calculators; seek advice.

For career moves, visit university jobs or Australian academic opportunities.