Central Queensland University (CQUniversity) will repay more than $1.3 million to over 1,000 current and former employees after a Fair Work Ombudsman investigation found staff had been underpaid across a range of workplace entitlements.

The university entered into an Enforceable Undertaking with the Fair Work Ombudsman after identifying payroll issues affecting employees across its campuses. The payments include outstanding wages, interest and superannuation owed to affected workers.

CQUniversity has already paid more than $1.2 million to 875 employees, while additional workers are still being identified and compensated as the university continues its review process.

The underpayments affected a wide range of staff, including academic employees, vocational education and training teachers, professional workers and student residential advisers. Both casual and permanent employees were impacted, including some vulnerable workers such as visa holders and younger employees.

The Fair Work Ombudsman found the issues involved multiple workplace entitlements under the university’s enterprise agreements, including incorrect base salary payments, leave entitlements, leave loading, public holiday payments, overtime, academic progression payments and casual minimum engagement requirements.

Individual underpayments varied significantly, with some employees owed less than one dollar while others were owed tens of thousands of dollars. The largest individual underpayment identified was more than $63,000, excluding interest and superannuation.

CQUniversity said the issues were caused by a combination of factors, including incorrect payroll system configurations, reliance on manual processes, staff turnover and administrative errors. The university said it had voluntarily reported the problems to the Fair Work Ombudsman in 2023 and had worked cooperatively with the regulator to correct the mistakes.

As part of the agreement, CQUniversity has committed to strengthening its payroll and compliance systems. Measures include establishing a dedicated wage integrity team, improving payroll controls, conducting additional audits and increasing resources focused on workplace compliance.

Fair Work Ombudsman Anna Booth said the agreement showed the importance of employers taking proactive steps to identify and fix payroll problems. She said organisations must ensure workers receive all legal entitlements and maintain reliable systems to prevent future errors.

The case is part of a broader focus by the Fair Work Ombudsman on improving compliance within Australia's university sector. Several universities have faced similar wage remediation processes after discovering historical payroll errors affecting staff payments.

CQUniversity operates campuses across Australia, with many located throughout Queensland, including Rockhampton, Mackay, Cairns, Townsville, Bundaberg, Emerald and Gladstone.

The university has apologised to affected employees and said it remains committed to completing its review and ensuring all outstanding payments are made.