Torrens University is set to defend a class action in the Federal Court over alleged underpayment of casual academic staff, ABC News reported, in what is described as the first known wage theft class action of its kind. Strategic Education Inc, the American owner of Torrens, disclosed a $20 million provision in earnings reports filed in the US and said it intends to defend the claim.
The class action was launched by Hayden Stephens and Associates and covers casual staff allegedly unpaid for work including marking, moderation, training, unit meetings and student consultations. Lawyers for staff put the number of casual academics allegedly unpaid for marking and other routine award entitlements at more than 1,000, covering a period of at least six years. Torrens has been operating in Australia since 2014, and the back-pay statute of limitations runs for six years.
A full Federal Court case brought by the Fair Work Ombudsman, with NTEU support, found Torrens had not paid staff for marking in breach of their award. A subsequent application to the High Court for leave to appeal was rejected. Torrens declined to comment due to the court action, but referenced a statement on its website indicating it has been paying staff for marking since March 2026.
The lead plaintiff, Tito Scohel, was employed as a lecturer at Torrens from 2023 to 2025. He said non-payment for marking plus other duties such as moderation, meetings and student consultations made it difficult for him to cover rent. Scohel described colleagues who held three or four jobs simultaneously because individual pay rates were insufficient to survive on.
NTEU president Alison Barnes said private providers beyond Torrens may face similar actions, expressing concern that Torrens could prove to be the tip of the iceberg. She described the underpayment problems as industrial-scale wage theft baked into business models, and said there had been no proper accountability or transparency.
Stephens said underpaid workers should not need to rely on assurances from Torrens or its US parent, and called for any remediation to be independent and conducted under court supervision. Across the broader university sector, 205,235 staff have now been repaid a total of $341,092,552 since wage underpayment problems were first reported in 2020.
Casual academic staff at Torrens who were employed during the relevant period may be entitled to back pay for marking, moderation, meetings and student consultations that were not previously compensated. Staff may need to check their own records to verify figures claimed by Torrens.
Reporting: ABC News
Written by Pick & Scroll News from the reporting and documents linked above.
