Casual Salary Review Project

The review identified some issues with our payment processes that have led to underpayment of some casual staff members. Issues identified primarily relate to the payment of entitlements to casual staff including minimum engagement, shift allowances and penalty/overtime payments.

As a first step, we compiled data from timesheets, rosters (both in Payroll system, emails, ID login data and from various sources) to supplement any missing data and build an accurate picture of when casual employee worked. 

This data was processed by a template developed by project team (based on the rules contained in the applicable Charles Darwin University and Union Enterprise Agreements) to calculate how much you should have been paid for working those hours. The calculation method has been shared with the Fair Work Ombudsman. 

The amount that you should have been paid for a pay period, as calculated by the template, was then compared to the amount that you were actually paid for that pay period. In terms of payments:

• where the amount you were actually paid was less that what the model says you should have been paid for that pay period, the difference between those figures is your shortfall for the pay period and will be paid to you;
• where the amount you were actually paid was more than what the model says you should have been paid for that pay period, no adjustment is made. 

The calculations were conducted on a pay period basis, but for ease of payment and explanation the calculations in your outcome letter are set out on a financial year basis. 

Numerous checks and validation processes were undertaken by the CDU Casual Salary Review project team and CDU payroll team to ensure the accuracy of the data and the calculations. These checks enabled us to identify, investigate and rectify issues arising from inaccurate or incomplete data sets.

No. The payment errors identified in the University's review primarily affected casual staff, professional and academic who were employed at CDU from February 2016 – February 2022. A number of casual staff employed during this time have not shown any underpayments.

Yes. We have proactively addressed this situation and self-reported to the Fair Work Ombudsman.

This is being calculated based on your individual circumstances. You will receive the difference between the amount you have already been paid and the amount you should have been paid. 

Additionally, you will receive interest at five per cent and superannuation will be calculated and paid on the entire amount to be repaid to you in accordance with applicable superannuation legislation. You will receive written notification which will include details of the amount to be paid to you.

If you have been informed that you are an affected employee, please ensure that your current payment and contact details are correct.  

CDU will reach out individually to provide you an update then proceed to make payment of any outstanding entitlements to you, minus any amounts we are required by law to withhold for tax or superannuation.

If you no longer have an active Australian bank account, payment can be made to your overseas bank, though there may be restrictions on our ability to make payments to bank accounts in certain countries. Further, your bank may apply fees to international transactions. 

Unfortunately, we cannot pay any outstanding superannuation contributions to an overseas bank account as these must be paid into a complying superannuation fund. If you no longer have a superannuation account in Australia, we can open one for you with UniSuper, or you may choose to open a complying superannuation account with a different provider and we can make the payment to that fund.

Remediation payments has been made to affected Casual Professional Staff since December 2023 via the payroll system. CDU is committed to making all remediation payments, including interest and superannuation for all those affected in as timely a manner as possible. 

We are continuing to work through all files individually to ensure a thorough and detailed analysis is completed. Once the University has completed the review and verified the necessary

Any payments to staff including backpay must be reported to the Australian Taxation Office. Any payments may affect your eligibility for government benefits. 

It is strongly recommended that if you receive a back-payment amount and you are in receipt of benefits that you contact Services Australia (Centrelink) and seek their advice on the impact of backpay you receive on your individual circumstances. Centrelink phone numbers are available.

Payments of back pay received during the current tax year, including those that relate to earlier financial years, are included on your PAYG payment summary. As with any salary, tax has been withheld from payments of back pay in accordance with PAYG withholding rules at a rate prescribed by the ATO. If you received a remediation payment from the University during the current financial year, you will receive a payslip from the University in the period that you are paid that, where applicable, will include details of "Lump Sum E" payments. A Lump Sum E is an amount of back pay that accrued, or was payable, more than 12 months before the date of payment and is $1,200 or more. 

Lump Sum E payments will need to be reported in your tax return as a lump sum payment. More information about reporting lump sum payments in your tax return is available on the ATO website. Back payments form part of your income and therefore are subject to income tax. This includes those that relate to earlier financial years, these will be included on your financial year 2024/2025 PAYG payment summary. Payments above $1200 and relating to a period which is more than 12 months before the payment date, may be classified as a Lump Sum Payment in Arrears (LSPIA) by the ATO. The University is unable to provide you with any financial advice. It is recommended you refer to the ATO website (refer to: ATO - Lump Sum Payments in Arrears Tax Offsets) or speak to your financial adviser for further information.

Any additional superannuation contribution payable in respect to the back payment will be made into your nominated, complying superannuation fund. If no fund has been nominated CDU may request UniSuper to open an account for this purpose. 

Superannuation will be forwarded to your nominated fund in the next available pay run after your individual payment has been paid. This is in accordance with legislative requirements.

To meet our obligations under superannuation legislation, the University is required to pay super contributions to either: 

• a complying super fund which meets the specific requirements and obligations under superannuation law or,
• a retirement savings account (RSA): an account that provides a low cost and low risk savings strategy for retirement. 

If you no longer have an active Australian superannuation account, the University will open a new UniSuper account for you (UniSuper will then contact you with your account details). Alternatively, you may choose to open an account with a complying superannuation provider. Instructions regarding this are available on the former employee verification form. 

If your previous Australian superannuation account is inactive due to you being a temporary resident that has since moved overseas, then please review the ATO website at the below link for how to claim your superannuation from this newly set up UniSuper account through the Departing Australia Superannuation Payment (DASP) process: 

https://www.ato.gov.au/Individuals/Super/Temporary-residents-and-superannuation/Departing-Australia-superannuation-payment-DASP/ 

Please also note that in order to protect accounts from fee erosion, inactive low-balance super accounts may be transferred to the ATO from UniSuper after 16 months of inactivity and therefore it is important to action the DASP process soon to access your funds in the most straightforward manner. Please refer to the ATO website at the below link for further information: 

Inactive low-balance super accounts | Australian Taxation Office (ato.gov.au)