VCET Payroll Remediation

This occurred due to genuine systems and process errors, including misinterpretation of aspects of the Enterprise Agreement (EA). It will be addressed through system updates, new sign‑on/off tools, and improved procedures and training.

Underpayments mainly relate to amounts owed on account of ordinary time rates, overtime and shift penalties. Casual, full time and part time employees covered by the Agreement have been affected.

Between March 2019 and March 2025, approximately 2,200 current and former employees covered by the EA were affected.

The average underpayment to individual employees is approximately $500, with almost half of affected employees impacted to the extent of under $50.

The review also found there were potential overpayments made of approximately $667,000, across more than 1,500 current and former employees. VCET will not pursue recovery of these amounts.

We will now complete the review of payroll data from March 2025 onwards.

Between March 2019 and March 2025, approximately 2,200 current and former employees covered by the EA were affected. A final review for payroll data from March 2025 is underway and will be completed in June 2026.

Wages paid in the week commencing 11 May will reflect system improvements to address the issue moving forward.

A payroll review in mid-2024 initially identified that some elements of the Enterprise Agreement may have been incorrectly interpreted and applied.

We appointed national law firm, Corrs Chambers Westgarth, and specialist advisors, McGrathNicol, to examine the issue.

VCET has reported the matter to the Fair Work Ombudsman and will work collaboratively with them to ensure the best outcomes for our current and former employees.

The investigation has been complex and taken some time, but it was necessary for us to be sure that we had all the correct information to repay employees who had been underpaid.

We are contacting affected individuals to repay the amounts owed to them. As required, payments will include interest and superannuation contributions.

We sincerely apologise to all affected employees. We have reviewed and corrected our systems and have confidence in our processes to ensure the correct application of the EA.

We acknowledge that instances of overpayment are a result of system issues and no fault of an employee. Given the significant effort required and the impact to individuals and the business, VCET will not pursue recovery of these amounts.

We will contact affected employees using all known contact details. This process is expected to start in June 2026 and may take some time. In the meantime, current and former employees are encouraged to email remediation@mcec.com.au with any questions.

A final review for payroll data from March 2025 is underway and will be completed in June 2026. Payments will then be made from July onwards.

Payment will be made to all affected employees, including former employees. A communications program to reach individually impacted current and former employees will start in June. Impacted employees will be notified by email, and you can encourage past employees to check their personal email, including their spam folder, for an email from VCET.

Where former employees who have been affected by underpayments cannot be contacted, payment will be made to the Federal Government’s Consolidated Revenue Fund. Affected employees can still claim this money at this time, by contacting the Fair Work Ombudsman.