Payroll review 2020

On Tuesday 25 February 2020, the Vice-Chancellor Professor Alex Zelinsky wrote to all staff to let them know the University was undertaking a review of its pay obligations following identification of some anomalies affecting casual professional and casual teaching staff which primarily related to the inconsistent application of overtime and penalty rates. The review covered pay obligations for the period 25 February 2014 to 6 August 2020. With the help of professional services firm PwC, work commenced in March 2020, and outcomes were announced on 11 November 2020.

Question and answers

• What prompted this review?
  The inconsistent application of penalty rates for some casual staff at the Conservatorium of Music was identified in 2019. A review of broader compliance with applicable minimum terms and conditions of employment, particularly in relation to work performed outside of ordinary hours was instigated.
• What did the review find and what were the causes?
  Issues identified relate to processes for managing time and attendance records and interpretation of entitlements for casual staff rather than payroll system configuration issues. No systemic issues were identified affecting ongoing, fixed term or contingent staff.
• Were all staff affected by these payroll anomalies?
  The issues are not widespread and particularly affected casual staff (though a small number of ongoing, fixed term or contingent staff were affected). No systemic issues were identified.
• Have affected current staff members been reimbursed?
  Yes. Current staff received an email from the University on 11 November 2020. These staff had payments made on pay day 12 November 2020.
• I am a former staff member. How will I know if I am affected?
  The University notified all affected former staff members from Wednesday 20 January 2021. Those affected received an email, as well as hard-copy correspondence to their last notified personal email and postal address. Where the University had a mobile phone number on record for former staff, an SMS message was also sent in an effort to contact them.
• I am a former staff member and I know or think I am affected. What do I need to do?
  The responsibility for making payment of the unpaid wages is now with the Fair Work Ombudsman (FWO).  Should you consider you are entitled to a payment from this review, please contact the Fair Work Ombudsman via email at unclaimedmonies@fwo.gov.au The FWO will make the necessary payment of unpaid wages to you once they have verified your identity and entitlement to a payment.  The FWO will then notify the University so any associated interest and superannuation payments can be made. Further information is available in the FWO Unclaimed Monies fact sheet
• How much money can I expect to be repaid?
  This is calculated based on your individual circumstances.
• What do I do if I don’t believe the payment I received / will receive is correct?
  All payments are carefully checked, and Payroll Staff will provide you with details and explain how the payment has been calculated. If you don’t believe the payment is correct, you may dispute the payment by following the Remediation Payment Dispute Procedure. This is a formal process the University has implemented as part of the Enforceable Undertaking it entered into with the Fair Work Ombudsman in August 2022.
• Will the lump sum remediation pay affect government benefits? 
  Any payments to staff including backpay must be reported to the Australian Taxation Office through the Single Touch Payroll process. Any payments may affect 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.
• How will the University deal with deceased estates?
  In the event of a payment being due to a deceased former employee, the University will endeavour to contact the executor or administrator of the estate.
• Will the payment appear on my income statement?
  All payments to staff including backpay and the associated interest will be included on income statements through the Single Touch Payroll process.
• Do I get paid superannuation on overtime payments?
  No. Overtime is not part of your ordinary time earnings (OTE). The Australian Taxation Office (ATO) website provides a definition and examples of OTE.
• Has the University informed the Fair Work Ombudsman (FWO)?
  Yes. We have proactively addressed this situation and self-reported to the Fair Work Ombudsman. The FWO has also advised it will review our process to ensure we are meeting our obligations. The University entered into an Enforceable Undertaking (EU) with the FWO in August 2022. The EU sets out a number of matters that the University must comply with in regard to the Payroll Review. The EU can be accessed on the FWO website by searching for “the University of Newcastle”.
• Can I speak to someone in person?
  Yes, you can contact the Payroll Review contact centre on weekdays from 9am-4pm on (02) 4921 5599 or email payroll.review@newcastle.edu.au.
• How can I give feedback?
  The University welcomes your feedback. To register your feedback please contact the Payroll Review Contact Centre on weekdays from 9am-4pm on (02) 4921 5599 or email payroll.review@newcastle.edu.au