Griffith University recently faced a serious issue when it was found that they had underpaid 5,457 current and former employees since 2015. To make things right, they will repay a total of $8.34 million, which includes wages, interest, and superannuation. One employee was even underpaid by over $92,400, highlighting just how significant this problem was.
Papers reveal that underpayments hit academics, fitness instructors, admin support, research assistants, proctors, and more. Missed entitlements included tutorials, subject coordination, pay‑band progression, meal and split‑shift allowances, plus incorrect research‑assistant rates
Although this news story may seem far away for SMEs or mid-sized businesses, it’s a loud alarm bell for every Australian employer.
This is not just one university. It's the invisible risk you have in your payroll system.
How did this happen?
According to the Fair Work Ombudsman, the root causes were classic compliance failures:
|
Problem |
Impact |
|
Lack of training and onboarding |
Staff are unaware of entitlements |
|
Manual payroll processes |
Prone to human error |
|
No payroll check or audit |
Errors went undetected for years |
|
Outdated systems |
Hardwired mistakes, lack of automation |
“A warning of the significant long‑running problems that can result from an employer failing to have appropriate checks and balances…” - Anna Booth, Fair Work Ombudsman
Why does this matter?
This isn't just a uni issue, it's a global compliance wake-up call. New wage-theft laws (commenced in January 2025) are exposing intentional underpayment to serious penalties, including jail time. No sector is immune.
If a large academic institution can transgress for nearly 10 years without being caught, smaller organisations with even less resources are more exposed!
Key compliance essentials every business leader must implement
- Automated payroll audits:
Regular automated pay-audit scripts catch dodgy payments before they are replicated. - Training + onboarding refresh
Make sure new HR, payroll, team-leads and course conveners are trained on awards, shifts, and allowances. - Yearly audits
Bring in an external auditor or train an internal auditor to conduct a yearly audit to identify underpayments. - Create a helpline/ inquiry channel
If staff cannot raise a pay matter easily, issues will remain hidden and unreported. - Establish a compliance committee
Make HR and leadership compulsory places with staff-rep membership on an ongoing compensation-oversight committee (the sort Griffith now is required to have under its Enforceable Undertaking).
Turning compliance into competitive advantage
Every Australian HR system must have STP, Awards and Super and be backed up with inbuilt compliance tools. These features help businesses streamline their payroll process while ensuring they keep up to date with compliance and industry standards, which significantly decreases the possibility of penalties and mistakes. Providing automated compliance mechanisms will not only ease the burden of administrative overhead, but it will also help to give confidence that payments are correct, timely, and compliant with legislation.
Next steps to take
To keep your payroll compliant and up to date, the first step is to perform a quick health check of your current payroll processes. In particular, take the time to review your payroll processes and look for potential gaps or risks; you may just find a rubber band that needs unwrapping. It's also wise to consult with your HRIS or payroll software provider and ask about their compliance audit trails; this will allow you to demonstrate that you have processes in place, especially if you need to demonstrate compliance to Fair Work or to your industry regulator/regulating authority. Additionally, keep abreast of Fair Work and industry updates by subscribing to alerts on relevant issues - this is crucial. Lastly, if you are a small team with a small budget or if you need additional peace of mind, consider outsourcing your HR compliance or allowing one of your team members to prepare for periodic reviews by a specialist.
Final Thoughts
Griffith University's more than $8 million error is not only an academic mistake but a prime example of what happens when compliance is an afterthought. The large underpayment scandal exposes a growing risk regarding finance and reputation for organisations that are not able to adhere to increasingly complex employment regulatory regimes. With more focus than ever on compliance by regulators and penalties growing, the time to react is now. A relatively short investment in systems, training and supervision can help avoid potential liabilities, avoid damaging the credibility of your workplace culture, and ultimately mean the difference between a smooth sailing audit and being the next headline story.
Avoid costly payroll errors before they spiral. Learn from our Automated Payroll Transition: Step‑by‑Step Guide for Businesses—a practical primer on compliance-driven automation.
