AUSTRALIA | An AUD 28.8 million settlement has been reached to compensate KFC employees for missed rest breaks during shifts.
Gordon Legal has confirmed that KFC and its franchisees have agreed to an AUD 28.8 million settlement in the KFC Rest Breaks Class Action for current and former KFC employees who alleged that they weren’t provided with rest breaks during their shifts at the fast-food giant.
The settlement has been agreed with KFC and over 80 franchise operators across the country.
Gordon Legal, which ran the case together with Shine Lawyers and with the support of the Shop, Distributive and Allied Employees Association (SDA), has estimated that approximately 90,000 current and former KFC team members will be eligible for compensation if the settlement is approved by the Federal Court.
The settlement was publicly announced in the Federal Court last week, following an agreement being reached between the applicants and KFC over the course of several months.
At a further hearing next month, the Court will be asked to order a ‘registration period’ during which affected workers must register their interest to receive compensation.
For the class action lead applicant Roshanpal Singh, the settlement justifies his decision to stand up to KFC about this long-standing issue.
“Like a lot of young people, this was one of my first real jobs. You don't question things; you just show up and do what you're told. But looking back, those rest breaks weren't a luxury; they were something we were legally owed. This settlement matters, not just for the money, but because it shows that big companies can't just ignore their obligations. I'm glad we stood up and did something about it, and I hope other young workers see this and know that they have rights worth fighting for,” said Singh.
Senior Associate at Gordon Legal, Guy Tiffany, said that the settlement outcome was an example of what collective action can achieve.
“This is a large settlement which will compensate many thousands of workers, and one which we think will send a powerful message to the fast-food giants and other employers of inexperienced workers. Regardless of your size and brand power, compliance cannot depend on convenience,” said Tiffany.
“We are pleased that KFC and franchisees have taken a sensible approach to this case, which will result in a fair outcome for thousands of young workers.”
Gerard Dwyer, National Secretary of the SDA, the union for retail, fast food, warehouse and online retail workers, said the SDA has welcomed the settlement, and that it will enable payments to thousands of existing and former KFC employees across the country.
“The SDA urges McDonald’s, which is in a similar position, to settle with the SDA on behalf of their current and former employees who did not receive the paid rest breaks to which they are entitled.”
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