The University of NSW is facing court for “knowingly” having payroll practices so poor they made it next to impossible to work out whether casual academics were underpaid, exposing the university to millions of dollars in fines.

The Fair Work Ombudsman launched Federal Circuit Court action on Monday against UNSW for allegedly breaching obligations on record-keeping, payslips and frequency of wage payments over six years, despite some of its management being made aware its practices were inadequate and unlawful as early as 2018.