St Peters Lutheran College unpaid 750 current and former employees

Private schools have been “put on notice” after a top Queensland college was forced to back pay millions after underpaying hundreds of current and former employees.

Queensland private schools underpaying “volunteer” sports coaches are on notice according to a leading education union, after a top Brisbane college was ordered to back pay almost $2.5 million in wages.

This week the Fair Work Ombudsman found St Peters Lutheran College had underpaid more than 750 current and former employees between 2012 and 2020, with the college engaging the staff for extra work as sports coaches and co-ordinators.

The Independent Education Union Queensland and Northern Territory branch secretary Terry Burke said the finding would put “schools on notice”, and said any staff undertaking such activities should be paid accordingly.

He also said now was the time for private schools to “own up”, and pay for any underpayments of co-curricular work.

St Peters Lutheran College self-reported to the FWO in November 2020, following external legal advice and an audit.

St Peters Lutheran College has been ordered to pay back almost $2.5m in wages.

The underpayments ranged between $37,719 and less than $3, with the majority in relation to the Indooroopilly campus.

Among the breaches the FWO found were in with relation to minimum rates of pay, casual loading, weekend penalty rates, overtime and vehicle allowances.

Staff had reportedly received lump sum payments, in exchange for their work.

“Whether staff or external providers are covered by a collective agreement or award, this outcome from the FWO demonstrates the need to recognise that an employment relationship exists with coaches,” Mr Burke said.

“Many other schools will now have need to urgently examine their employment relationships with coaches and the like.

“Recognising that a proper employment relationship exists in these circumstances is fundamental for fair remuneration as well as matters of law, accountability and child protection responsibilities.

“To its credit, St Peters voluntarily disclosed wrongdoing by self-reporting the matter to the FWO and taking steps to rectify the mistakes.”

FWO Sandra Parker said the school had “demonstrated a strong commitment to rectifying all underpayments”, and had already back paid about $$1.9 million to 631 workers.

“Under the Enforceable Undertaking, St Peters Lutheran College has committed to implementing stringent measures to protect the rights of its workforce,” she said.

“These measures include providing the FWO with information about its new processes for ensuring compliance in future, and engaging an independent auditor to conduct audits across two years of its compliance with workplace laws.”

Under the finding the school would also make a payment of $20,000 to the Commonwealth’s Consolidated Revenue Fund.