How did the underpayments occur?
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.
How many people were 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.
Over what period did the issue take place?
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.
When was the issue identified?
A payroll review in mid-2024 initially identified that some elements of the Enterprise Agreement may have been incorrectly interpreted and applied.
What actions did you take when you were aware of the issue?
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.
Why did the investigation take so long?
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.
What about superannuation and interest that would have accrued?
We are contacting affected individuals to repay the amounts owed to them. As required, payments will include interest and superannuation contributions.
How can people have confidence that this won’t happen again?
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.
What do you plan to do with the overpayment amounts?
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.
What do I do if I think I’ve been affected?
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.
When will people begin to receive payment?
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.
I know someone who used to work at MCEC who may be impacted. What should I tell them?
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.
What happens to the payment if you can’t contact former employees?
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.
We acknowledge the Traditional Owners of the lands on which we operate our venues in Narrm and Djilang; the Wurundjeri Woi Wurrung and Wadawurrung peoples. We pay our respects to Elders past and present and seek to honour the long-standing tradition of building community and exchanging ideas on these lands. We extend that respect to the broader Kulin Nations and the Traditional Owners of all First Nations communities across Victoria and Australia.
