University of Adelaide Under Probe After Underpaying 838 Academic Staff $1.25 Million Over Eight Years

The Revelation of Underpayments at the University of Adelaide

The University of Adelaide (often referred to as Adelaide Uni) made headlines in late October 2025 when it publicly admitted to underpaying a significant number of its casual academic staff. This self-disclosure came amid a wave of similar revelations across Australian higher education institutions, highlighting systemic vulnerabilities in payroll practices. The institution uncovered discrepancies totaling approximately $1.25 million owed to 838 current and former employees, spanning from March 2017 to May 2025—an eight-year period.

Casual academic staff, who form a backbone of teaching and coordination in universities, were the primary victims. These roles typically involve sessional lecturers, tutors, and course coordinators who rely on precise hourly rates adjusted for qualifications like PhDs or leadership responsibilities. The underpayments arose from failures to apply higher pay rates mandated under enterprise agreements, despite staff meeting the criteria.

This incident is particularly poignant as it coincides with the university's merger with the University of South Australia, set to form a new entity opening in January 2026. The timing raises questions about governance transitions and payroll integrity during institutional change.

Breaking Down the Scope of the Underpayments

The affected cohort included 838 individuals, with about 60% being former staff, making remediation challenging due to outdated contact details. On average, each was short-changed by around $1,494, though individual amounts varied based on hours worked and roles. Notably, this sum represents less than 0.05% of the university's total salary payments over the period, yet it underscores errors affecting hundreds.

The discrepancies primarily involved academic casuals holding PhDs or nominated as course coordinators. Under the enterprise bargaining agreement (full name: University of Adelaide Enterprise Agreement), such qualifications or duties entitle staff to elevated hourly rates—typically a loading on base pay to reflect expertise and responsibility. Step-by-step, payroll processes should verify qualifications via human resources systems, calculate loadings (e.g., Level B or C rates plus 25-50% casual loading), and apply them per timesheet. Failures here stemmed from decentralized administration at faculty levels, where local managers input data without uniform oversight.

In Australian higher education context, casual academics comprise up to 50-70% of teaching workforce at many unis, earning precarious incomes. This vulnerability amplifies the scandal's gravity.

The University’s Response and Remediation Efforts

Adelaide Uni acted proactively by ramping up internal audits in response to sector-wide alerts. Upon discovery, it immediately notified the Fair Work Ombudsman (FWO)—Australia’s workplace regulator—and began contacting affected staff. Repayments have commenced, with promises of interest where applicable. Vice-Chancellor Professor Peter Høj communicated transparently via staff email on September 25, 2025, expressing deep regret and committing to process enhancements.

Høj attributed the issue to “a breakdown in systems,” citing complexities in industrial instruments and local-level payments, not deliberate misconduct. The university is investing in better controls, including centralized payroll verification and ongoing audits. If more cases emerge, prompt remediation is pledged. This mirrors best practices recommended by FWO for self-reporters, potentially mitigating penalties.

For those in lecturer jobs or similar roles, this highlights the importance of timesheet accuracy and understanding enterprise agreements.

Fair Work Ombudsman’s Ongoing Probe

The FWO launched an investigation immediately after notification, scrutinizing compliance with the Fair Work Act 2009. As of early 2026, no penalties have been announced for Adelaide Uni, unlike recent fines on peers like UNSW ($213,120 in January 2026 for record-keeping failures). FWO emphasizes full cooperation, with affected workers encouraged to contact them directly. Enforceable undertakings—binding agreements for repayments and audits—are common outcomes, as seen with QUT ($1.9m backpay, November 2025) and Monash ($20.7m, December 2025).

The regulator has recovered over $218 million from 28 universities by mid-2025, with totals nearing $400 million sector-wide. This probe fits a national crackdown on wage theft in higher ed.Fair Work Ombudsman enforceable undertakings

Perspectives from Unions and Affected Staff

The National Tertiary Education Union (NTEU) SA branch, led by Secretary Dr. Andrew Miller, views this as potentially “the tip of the iceberg.” Audits covered only specific agreement clauses, leaving room for further issues like superannuation or overtime. Miller urges stronger governance, especially pre-merger: “The least well-paid people in the university should not be short-changed.” Staff anecdotes, though anonymized, reveal frustration over delayed pay impacting mortgages or research funding.

• Union demands: Independent audits, whistleblower protections.
• Staff concerns: Trust erosion in casual contracts.
• Positive note: Self-reporting praised by some as ethical.

Explore union-backed higher ed career advice for navigating pay disputes.

A Systemic Issue Across Australian Universities

Adelaide Uni’s case is no outlier. Over 33 institutions have self-reported underpayments totaling $203 million repaid, per recent tallies. Key examples:

Victoria leads with $50m owed; Senate inquiry recommends governance overhauls. Casualisation exacerbates risks, as 50%+ teaching is casual.

Root Causes: Payroll Complexity and Casualisation

Experts pinpoint multiple factors:

• Enterprise Agreement intricacies: Multiple rates, loadings (e.g., casual 25%, PhD premium).
• Decentralized payroll: Faculty-level inputs prone to errors.
• Casual workforce scale: High volume, low oversight.
• Legacy systems: Outdated software failing audits.
• Governance gaps: Insufficient training, monitoring.

Process breakdown: 1) Timesheet submission; 2) Rate lookup; 3) Calculation; 4) Approval; 5) Payment. Lapses at steps 2-3 common. Australian unis face unique pressures from funding cuts, intl student reliance.

Impacts on Casual Academic Careers and University Reputation

Casual academics, often on adjunct professor jobs or sessional contracts, suffer most: lost income delays bills, research, family support. Broader effects include eroded trust, recruitment challenges amid talent wars. Reputationally, unis risk Senate scrutiny, donor pullback. For Adelaide, merger timing amplifies scrutiny on the new Adelaide University.

Statistics: Casual pay averages $100-150/hr, but underpayments compound precarity—70% seek stable higher ed jobs.

The Merger Context and Governance Reforms Needed

As Adelaide Uni merges with Uni SA into Adelaide University (opening Jan 2026), payroll harmonization is critical. NTEU warns of inherited issues; interim governance must prioritize compliance. Senate interim report calls for national standards: mandatory annual audits, centralized payrolls.

Solutions proposed:

• AI-assisted payroll verification.
• Enterprise-wide training.
• Transparent reporting dashboards.

Lessons and Actionable Insights for Stakeholders

For unis: Implement FWO’s self-audit toolkit. Staff: Track entitlements, join unions. Policymakers: Simplify agreements. Concrete example: Sydney Uni’s enforceable undertaking mandates three-year audits.

Positive outlook: Self-reporting culture growing, recoveries swift. For career seekers in Australia university jobs, verify employer compliance via Rate My Professor insights.

Photo by 0xk on Unsplash

Future Outlook: Toward Wage Theft-Free Higher Education

With FWO probes ongoing and totals surpassing $400m, 2026 may see legislative pushes like Victoria’s wage theft criminalization. Adelaide Uni’s case, though smaller, exemplifies proactive reform potential. Stakeholders must collaborate for sustainable fixes.

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