Wage Integrity

Charles Sturt University carries out regular reviews into its wage compliance.

These reviews are part of our processes to ensure accurate financial management and correct staff payments.

The potential underpayment of staff is a critical concern to Charles Sturt and the University will rectify any underpayment of staff.

Modifications to systems and processes have been finalised to address issues identified in this review.

Payments to affected current staff have been completed.

Affected former staff will be contacted from 20 June 2024 where we will ask you to confirm your bank and superannuation details with us. Payments to affected former staff will commence from 9 July 2024.

About the program

Why did Charles Sturt undertake a review of staff payments?

Charles Sturt University carries out regular reviews into its wage compliance.
These reviews are part of our governance processes to ensure accurate financial management and correct staff payments.
What were the findings of the review?
The review found no deliberate underpayment of staff. However, issues of under payments relating to the application of:
Penalty rates for casual employees
Casual rates for student employees
Shift penalty rates
Penalty rates
The review identified that casual student employees have not been paid penalty rates for work performed on weekends and public holidays.
Casual rates
The review identified that Charles Sturt University was not meeting its requirements regarding payment of casual student employees whose casual rate of pay fell below the equivalent rate of pay under the Higher Education Industry-General Staff-Award 2020.
Shift penalty rates
The review identified some casual student employees have not been paid shift penalties.
This review is ongoing.
What is the time period in which underpayments are being reviewed?

Penalty rates
The review period relating to penalty rates is from 1 Sep 2017 to 28 March 2024, when Charles Sturt University implemented new processes and controls.
Casual rates
The review period for casual student rates is 1 September 2017 to 5 March 2024 when Charles Sturt University implemented new control measures.
Shift penalty rates
This review is ongoing.
Who initiated this review?

Charles Sturt University carries out regular reviews into its wage compliance.
These reviews are part of our processes to ensure accurate financial management and correct staff payments.
How did the underpayments happen?

Penalty rates
The review identified that casual student employees have not been paid penalty rates for work performed on weekends and public holidays. This was due to errors in interpreting previous Enterprise Agreements.
Casual rates
The review identified that Charles Sturt University was not meeting its requirements regarding payment of casual student employees whose casual rate of pay fell below the equivalent rate of pay under the Higher Education Industry-General Staff-Award 2020.
Shift penalty rates
The review identified some casual student employees have not been paid shift penalties. This was an error.
This review is ongoing.
What types of underpayments have been found?

The application of penalty rates for casual employees employed under student rates for the period September 2017 to March 2024.
The application of shift penalty rates for employees for the period September 2017 to March 2024.
What mitigating steps have been taken to ensure staff are not still being underpaid?

The review has highlighted opportunities for improvements in our systems and processes, to help increase transparency and reduce the risk of any staff member misinterpreting our approved processes and Enterprise Agreement.
System updates have been made, and penalty rates for weekends or public holidays now apply for staff employed as a student casual.
System updates have also been made, and shift penalty rates now apply for the area that this issue was identified in.
Were there any overpayments found?

No, no overpayments have been found.
Who were the employees affected by these payroll anomalies?

Student casual staff and casual professional/general staff who worked for Charles Sturt between September 2017 and March 2024.
How many employees have been impacted?

With the support of an independent, external organisation, we have identified1,615 staff as impacted.
How will I know if I’ve been impacted?

We will contact all current and former staff who have been affected by underpayments. Former staff will be asked to verify their identity prior to any payments being made.
Is there a process for complaints?

Yes, you can email your concerns to us via wageremediation@csu.edu.au and we will address them.
I have questions regarding the Wage Remediation Program. Who do I contact?
You can contact us via:
email at wageremediation@csu.edu.au, or
call us on +61 2 6338 4202 Monday to Friday between 9am and 5pm (AEST).
Where can I find more information about the enterprise agreement?

The current agreement (applicable from 6 March 2024) is available on the Charles Sturt University website.
Prior versions of Charles Sturt’s enterprise agreements are available on the Fair Work Commission website.

Payments

What years are payments being made for?

September 2017 – March 2024.
Do I have to do anything to prove my claim?

No, Charles Sturt is working with an independent, external organisation and the the work has been done to substantiate any underpayments.
How have you calculated my payment?
The calculation methodology has been designed by an independent party, and we have informed the Fair Work Ombudsman of the approach.
Affected staff will be given a breakdown of the underpayments and the years to which they relate.
We completed our calculations based on the following steps:
We first determined the reason for the underpayment and calculated how much should have been paid based on the correct interpretation of the Charles Sturt University Enterprise Agreement in place at the time.
We have applied the agreed superannuation rate to the underpayment.
Finally, in recognition of the fact that affected staff have not had access to these funds, we have applied an additional interest rate of 8.35%. on the underpayment figure. We have applied this value based on the Federal Court of Australia’s pre-judgment interest rate. See Pre-judgment and post-judgment interest rates (fedcourt.gov.au). We have also applied 10% interest on the superable component of the underpayment. The interest on superannuation will be paid directly to the super fund.
Penalty rates
The calculation is based on approved timesheet data by casual student employees.
The relevant rate for the student is multiplied by the timesheet hours and the appropriate penalty calculated depending on if the work was performed on a Saturday (50%), Sunday (100%) or Public Holiday (150%).
Casual rates
An updated rate card has been used for calculating the correct rate of pay. Checks were performed across all approved timesheet claims for casual student employees to calculate the difference between the applied rate and the correct rate. The differences were noted as shortfalls. A secondary check of pay slips was also conducted.
How much money can I expect to be repaid?

The amount of money you can expect to be repaid will depend on several factors, including the specific shifts you worked. With the support of an independent, external organisation we are reviewing all relevant records to ensure accurate calculations. Once this review is complete, we will provide a detailed breakdown of the repayment amount specific to your situation.
What do I do if I don’t agree with the payment amount that has been determined?

Please let us know why via wageremediation@csu.edu.au, and we can explain how we have reached this amount.
When will I receive my payment?

Payments will be made to affected staff in stages commencing May 2024.
Payments to current staff will commence from 28 May 2024.
We will contact former staff in June requesting updated details so payments can be made. Once details have been verified, payments will commence to former staff from 9 July 2024.
Could I receive more than one payment?

We are planning just one payment at this stage, but we will contact you again if required.
What are the financial implications of the payment?

PAYG taxation will be withheld using the relevant tax schedule:
https://www.ato.gov.au/Rates/Individual-income-tax-rates/
We recommend seeking independent financial advice about your own personal circumstances in terms of tax, superannuation and government benefits.
Current Charles Sturt University students can contact the Scholarship and Finance Support team if you require support with money management.
How is superannuation going to be paid?

The superable component of the underpayment will be paid directly into your nominated fund, together with the interest applicable to super. In the event that an affected former staff member is deceased, the payment will be made to their estate.
Can I salary sacrifice my payment?

You can’t make salary sacrifice contributions to superannuation for past wages unless you had a pre-arranged agreement with Charles Sturt University when you earned that income.
I have a HECS debt. What will my payment mean for my HECS?

For back payments, tax will be withheld and averaged over the entire financial year. If you have advised us that you have a HECS debt, we will also withhold additional tax for that up to a maximum of 47%.
I’ve received a payment. What does my payment summary mean?

The following explains the seven columns listed on the wage remediation payment summary:
Financial year: This is a 12-month period used for tax and accounting purposes. The payment summary provides a breakdown of any underpayments and specifies the years to which they relate.
Casual student rate: This refers to the hourly wage paid to a casual employee for hours worked during the financial year. The rate is applied based on the rate in effect at the time the work was performed.
Penalty rate: This refers to the payment of work completed on Saturday, Sunday or a public holiday. The rate is applied based on the rate in effect at the time the work was performed with the following penalties applied: Saturday (50%), Sunday (100%) or Public Holiday (150%).
Gross taxable income: This is the total amount from the casual student rate and/or the penalty rate columns. The appropriate Pay As You Go (PAYG) tax rate will be withheld from this amount, and the net amount will be deposited into your nominated account. The remediation payment will be reported to the Australian Tax Office as part of your taxable income and will appear on your Charles Sturt University Income Statement.
Simple interest on taxable income: The simple interest on gross taxable income will be paid to your nominated bank account. It will not be reported to the Australian Tax Office as employment income.
Employer super: Superannuation on owed amounts will be paid at the applicable rate at the time of payment. This will be paid to your nominated superannuation fund.
Simple interest on employer super: Simple interest on superannuation will be paid to your nominated superannuation fund.

Additional questions for former staff

I am a former employee and I think I am affected but have not received any correspondence from the University. What do I need to do?

The University is reviewing all payments made in the relevant time period and will contact affected former staff.
If you have not been contacted by the end of May and you think we have missed something, you can raise your concern via email to wageremediation@csu.edu.au.
I am a former staff member. How do I submit my up-to-date contact details?

If you have been impacted, we will contact you in June with a link to a secure Online Form where you can submit your updated details.
Where do I send my documents/information?

In most cases, we won’t need any documentation, just for you to confirm some details with us. However, if you have a self-managed super fund or changed your name since you left Charles Sturt, you will need to provide documentation.
I no longer have a superannuation account as I am now retired. Can the University make the payment to a different account?

Australian legislation around Superannuation Guarantee requires that employer superannuation payments are made to a complying superannuation fund. If you no longer have an account, you will need to set up a new one to receive the payment.
I no longer live in Australia, have an Australian bank account or am a resident for tax purposes. Can I still get the payment?

If a former employee is not an Australian citizen and work was performed offshore, payment should be processed via Accounts Payable to an international bank account.
Work performed onshore is taxable in Australia - if an Australian bank account is not provided, salary will be paid into a clearing account. Payroll will raise an international payment via Accounts Payable.
How will the University deal with deceased estates?

Where a payment is owed to a former employee who has passed away, the amount will be payable to the deceased's estate. Confirmation of authority to act on behalf of the estate will be required.