Employee Entitlement Remediation Program
On this page
The University of Western Australia regularly reviews the policies, processes, practices and systems which support the historical interpretation, application and compliance of employee entitlements and pay.
The University acknowledges the inconsistent application and ongoing claims of underpayments across the higher education sector, as well as evolving legislative interpretations and ongoing investigations. We are committed to an ongoing culture of compliance to ensure employees are correctly remunerated.
The Employee Entitlement Remediation Program (the Program) was established to address any known or suspected misinterpretation and/or non-compliance in employee entitlement payments. The program seeks to ensure proactive measures are taken to remediate any identified historical discrepancies, as well as the appropriate future application of entitlements.
The University has reported the program’s findings to the Office of Fair Work Ombudsman (OFWO). Other key stakeholders, including the National Tertiary Education Union (NTEU) and Tertiary Education Quality and Standards Agency (TEQSA) are being informed of our progress.
The program has identified historical discrepancies in interpretation and application in the following areas:
- Superannuation
- Long Service Leave
- Casual Pay Rates
Each matter is at a different stage of review, with the superannuation review now completed and currently being remediated.
A staged approach to the program of works is expected to continue for the remainder of 2024.
Employee Entitlement Remediation Program process:
Identify
Evaluate legislative and contractual obligations and identify any discrepancy.
Review
Detailed assessment of compliance, analyse data and recalculate obligations.
Remediate
Communicate with impacted employees and process payments.
Prevent
Embed system, policy, process, training improvements.
Each matter identified by the program is at a different stage, as illustrated below.
Current stage of each matter:
| Issue | Identify | Review | Remediate | Prevent |
| Superannuation | Complete | Complete | In progress | In progress |
| Long Service Leave | Complete | In progress | ||
| Casual Pay Rates | In progress |
This webpage will be updated as the program of review progresses. The University commits to keeping employees informed as these matters are resolved.
Superannuation
The University undertook a detailed review of its superannuation obligations following the ATO Superannuation Guarantee Amnesty in 2020.
To assist with the review, the University engaged external experts to support our understanding of the interpretation and application of our obligations.
-
Identify
The University identified a change in interpretation of the University’s superannuation obligations in relation to the basis on which superannuation contributions are paid to employees entitled to 17% superannuation.
The University provides employees with up to 17% superannuation contribution, which is greater than the current minimum Superannuation Guarantee (SG) rate of 11% (for the 2023-24 financial year). The University also offers some employees a range of choices relating to their contribution rates, including partial or total conversion of employer contributions to the SG rate. This has meant that determining and calculating superannuation contributions has increasingly become complex.
-
Review
Following detailed review and extensive modelling, the University determined inadvertent historical discrepancies in the superannuation rate applied to some employee superannuation entitlements, including but not limited to higher duty allowances, market allowances and leave loading.
The detailed review and modelling covered the period 1 July 2013 to 24 March 2024 and identified 8,200 employees (5,500 former and 2,700 current employees) with a total superannuation shortfall over this period of $6.6 million. This represents a discrepancy of less than 1% in superannuation payments over the period.
The discrepancies identified both shortfalls and overpayments and the University committed to prompt remediation of the shortfalls. The University will not seek to recover historical overpayments.
-
Remediate
The University has sought to notify all affected employees and is remediating the shortfalls, with interest.
Total payments to employee superannuation funds will be $10.6 million, comprising $6.6 million in shortfall payments and $4 million in interest.
All superannuation remediation payments will be paid directly to employee superannuation funds and payments will commence from May 2024.
Interest will be applied using the Federal Court pre-judgment rate (currently 8.35%).
A small cohort of superannuation shortfalls ($0.1 million) has been identified under the ATO legislation and will be remediated in May 2024, in accordance with the Superannuation Guarantee (Administration) Act 1992. For payments relating to Superannuation Guarantee (SG) obligations, the ATO will determine the interest applicable.
A small number of employees who currently receive an allowance will be affected by the change who and will receive back-paid contributions. These employees will be notified accordingly. For a small number of employees who continue to receive overpayments, the University will be in direct contact and ensure a fair transition to the correct superannuation.
-
Prevent
The University clarified the basis of superannuation in its 2024 enterprise agreements and has updated policies and processes to align with the revised interpretation.
System changes are being implemented and ongoing compliance training is being supported.
A program of assurance and audits continues to ensure ongoing compliance with current and future superannuation obligations.
Superannuation FAQs
-
I think I might have been affected but haven’t heard from the University, what can I do?If your contact details have changed, please see “Update your Contact details” and ensure we have your current email and address. If you have updated your contact details and believe you may be affected by the superannuation remediation but haven’t heard from us by June 2024, please email [email protected] or call (08) 6488 6888.
-
Where will my superannuation remediation payments go?
All superannuation payments are paid directly into your superannuation funds as held on record by the University.
For UniSuper members, all remediation payments will go into your accumulation account. For employees with a Defined Benefit Division (DBD) account, the fund may advise of any impact to your defined benefit calculations.
Any payments relating to Superannuation Guarantee (SG) obligations will be made via the Australian Tax Office (ATO). The ATO will assess the amount, including interest, issue correspondence to affected employees and disburse the funds to your superannuation fund.
All affected employees will receive a letter from the University advising of the shortfalls and identifying any SG components.
-
Will my superannuation remediation payments be taxable?
Superannuation contributions are typically taxable at 15%, though there are exceptions to this which will be based on your personal circumstances.
For further information on taxation, we refer to you the Australian Taxation Office (ATO) website and the How your super is taxed information on the UniSuper website.
UniSuper has been notified of the remediation and has arranged for member service consultants to be available to provide support. Appointments can be made on the UniSuper website.
-
The superannuation payment may cause me to exceed the superannuation concessional cap. What can I do?
Concessional superannuation contributions that are above yearly limits, currently $27,500 (for the 2023-24 financial year), are included in your assessable income and may affect how much income tax you pay.
If you may be at risk of exceeding the superannuation concessional contributions cap for this financial year, refer to the Australian Taxation Office (ATO) website for information on options available to you.
-
How will the University deal with deceased estates?If a payment is owed to a deceased former employee, the University will make efforts to reach out to the executor or administrator of the estate. Any outstanding amounts will be disbursed to the estate of the deceased or their legal representative, as dictated by law.
-
Will remediation affect government benefits?It is recommended that if you receive any remediation payment amount and you are in receipt of benefits that you contact Services Australia (Centrelink) and seek their advice based on your individual circumstances. You can contact Services Australia by making an appointment.
-
How has interest been determined on payments?
Under Australian Tax Office (ATO) legislation, the University has an obligation to apply interest in accordance with the ATO’s requirements for Superannuation Guarantee (SG) shortfalls. This is calculated and applied by the ATO on the shortfalls. The rate applied is currently 10% per annum nominal interest.
While there is no obligation for interest payments to be made on Enterprise Agreement shortfalls, the University determined that the Federal Court pre-judgement rate of 8.35% per annum would be applied to the cumulative quarterly total of the shortfall amounts.
-
How are payments calculated?
Payments comprise of a superannuation shortfall amount and interest on the shortfall amount.
The University engaged a third party to calculate the superannuation that would have been due under the revised interpretation for each fortnightly pay period for all University employees over the review period (1 July 2013 – 24 March 2024). The modelled outcomes were then compared to the actual fortnightly superannuation paid during the same period and across the quarter. Interest was calculated and applied on any net shortfalls identified in each quarter. The cumulative quarterly shortfalls over the remediation period resulted in the final total shortfall amount for each employee.
The University also decided to increase any calculated shortfalls of less than $20.00 relating to Enterprise Agreement obligations to a $20.00 payment.
-
I no longer have an active superannuation fund; how will I receive payment?
Where you have disclosed to the University that you no longer have a superannuation fund that accepts contributions (i.e. if the individual is retired or has a pension fund), the University will disperse the payment to UniSuper. UniSuper will create a new accumulation fund on your behalf.
UniSuper can provide support and assistance in managing your superannuation and allocating the funds according to your personal circumstances. Appointments can be made on the UniSuper website.
Long Service Leave
The University undertook a detailed review of its long service leave obligations.
To assist with the review, the University engaged external experts to support our understanding of the interpretation and application of our obligations.
-
Identify
The University has identified a misinterpretation in its obligations of long service leave entitlements to some cohorts of casuals employees.
The following pre-award legislation has been identified as taking precedence over Enterprise Agreements where they provide a greater benefit to casual employees than the prevailing Enterprise Agreement:
Casual Cohort
Legislative instrument
Academic ELICOS
Child Care Long Service Leave Act 1958 (WA) Applies Applies Childcare (Out of School Care – Playleaders) WA Award 2003 or the Childcare (Long Day care) WA Award 2005. Applies
Further, the University has identified 104 former professional and general employees who are owed additional payments of vested long service leave following their termination of employment between 2013 and 2020. Those former employees will be contacted by the University and we expect to have their payments remediated promptly.
-
Review
The University is currently undertaking detailed review and extensive modelling to determine those casual employees whose entitlements may be affected. The review covers the period from 1 January 2012.
The review is complex as employees may have held more than one position or employee contract type over their employment history which attract different long service leave entitlements. They may also have taken breaks between periods of employment.
The University expects the first stage of review and modelling to be completed by the end of July 2024 to inform next steps.
Casual Employee Pay Rates
The University is undertaking a review of its application of the casual employee rates of pay according to the nature of the work performed.
To assist with the review, the University is engaging external experts to support our understanding of the interpretation and application of our obligations.
-
Identify
The University continues to work through identification of any historical discrepancies and is committed to detailed and prompt review of any discrepancies identified. Where discrepancies are identified the University will contact those casual employees who may be affected.
We expect to be able to provide further advice to any casual employees affected following detailed review in July 2024.
Update your Contact details
To assist us in contacting affected employees we ask that you ensure your contact details held on record are current.
For current employees, you can update your records via ESS.
For former employees, you can update your contact details via a secure form.
The University prioritises the confidentiality, privacy, and security of your personal information, and we are committed to safeguarding them effectively.