Queensland Health nurses, midwives and health workers have won a reprieve in their ongoing payroll debacle, with the state government announcing a freeze on recovering overpayments.

Premier Anna Bligh has put a moratorium on chasing $62 million in overpayments until Queensland Health has paid up on underpayments.

Ms Bligh said she hoped the move would help restore staff confidence in the payroll system.

“In my view the approach adopted by Queensland Health in seeking to recover overpayments from staff while it was clear that many employees were still owed entitlements was unacceptable,” she said.

“We will also appoint an external workplace ombudsman, provide more support for line managers, better recognition for payroll staff, and trial new pay cycle arrangements at a small number of sites.

“Further, agreement has been reached on new arrangements to ensure that in future adjustments will be made regularly so that staff receive their entitlements in a timely way and do not accrue large overpayments.”

Anger over the payroll debacle has been growing after letters were sent to 38,000 of the 80,000 public health workforce demanding repayment of alleged overpayments.

Mounting outrage at the beleaguered system has also hit Facebook, after two Brisbane emergency nurses launched a petition demanding underpayments be paid before overpayments.

Almost 3000 people have signed up to the Queensland Health Payroll Disaster – Fightback page, voicing frustration at both the government and the Queensland Nurses Union over the ongoing saga.

The in-principle agreement reached at the weekend between the government and the union will go to next week’s annual QNU conference for consideration before being sent to the Queensland Industrial Relations Commission.

QNU secretary Beth Mohle said the breakthrough was good news.

“That is what the QNU has argued since the overpayment collections started and we’ve finally got the focus back on the needs of underpaid staff,” she said.

“The decision to appoint an ombudsman and provide more support for line managers is also a step in the right direction.”