James Cook University: Comprehensive review of payroll records launched

James Cook University says it has self-reported the matter to the Fair Work Ombudsman and has instigated a comprehensive review of its payroll records.

James Cook University vice chancellor Professor Simon Biggs. Picture: Brendan Radke

James Cook University believes casual employees “may not have been paid correctly” for minimum hours worked and other entitlements, with second oldest university in Queensland launching a historical payroll system review.

The institution released a statement on Wednesday saying it had “identified evidence of historical compliance concerns … with payroll systems and processes”.

It has campuses in Townsville, Cairns, Rockhampton, Mackay, Mount Isa, Thursday Island, Brisbane, and Singapore.

JCU has self-reported the matter to the Fair Work Ombudsman and has instigated a comprehensive review of payroll records.

Vice Chancellor Professor Simon Biggs said the review, which will initially focus on the past six years, is in its initial stages.

“I can confirm that unfortunately, some historical issues have been identified and we deeply regret these,” Professor Biggs said.

“I’d like to assure impacted staff that any required remediation is considered a matter of urgency by the university.

Vice chancellor Simon Biggs said the university’s focus was ensuring casual staff members were being paid correctly. Picture: Cameron Laird.

“Our focus is firmly on ensuring our casual staff members are being paid correctly and the rectification of any past issues.

“Further details including the number of staff members affected are still to be determined.

“A newly formed project team will conduct a thorough review of our payroll records.

“We will also take this opportunity to review our processes and systems more broadly to ensure that they are more robust against such issues going forward.”

In 2022, JCU found 2000 staff had been underpaid superannuation benefits worth a total of $1 million over an 11-year period.

While JCU is still investigating how many staff are affected by this current issue, the National Tertiary Education Union claims more than 7500 current and previous staff are impacted.

“It’s essential that every cent owed to JCU staff is paid back in full,” NTEU JCU Branch President Dr Jonathan Strauss said.

“JCU is a major employer in Cairns and Townsville. It’s critical that the entire community has faith the university is paying staff, particularly their lowest paid staff, properly.”

It comes after Australian Catholic University released a shock statement in January disclosing a similar payroll discrepancy, which occurred between 2016 and 2023.

The institution, with a campus in Banyo on Brisbane’s northside, admitted to underpaying 1100 casual academic staff to the tune of around $3.6 million over those seven years.

An extensive audit identified inaccuracies in how entitlements were calculated.

The issues related to unpaid or underpaid entitlements for sessional staff with PhD qualifications, or academics who were subject/unit co-ordinators or lecturers-in-charge.

NTEU state secretary Michael McNally called for a national university governance overhaul.

“We really appreciate that JCU management has self-reported to the Fair Work Ombudsman and has undertaken to work constructively with the NTEU on these underpayments, but it’s clear there are deep systemic problems in the sector fuelling widespread wage theft,” he said.

“The national wage theft tally at universities is now beyond $170 million – it’s a staggering and shameful number that demands urgent change.”