Class action alleges that KFC restaurants did not provide employees 10-minute breaks
The operator of KFC restaurants in Australia has agreed to pay up to $9 million to settle a class action alleging that it did not give employees 10-minute breaks.
Collins Foods Limited, in an ASX statement, agreed to settle but made no admission of liability on the allegations.
"In agreeing to resolve the litigation, Collins Foods makes no admission of liability. The terms of the settlement are otherwise confidential," the statement read.
Denied paid breaks
The settlement, which remains subject to approval by the Federal Court of Australia, comes after a class action alleging that KFC and its franchisees denied employees their right to paid breaks.
The class action was brought by Gordon Legal, inc collaboration with Shine Lawyers.
According to the lawsuit, KFC allegedly did not provide its workers with a paid 10-minute break for shifts over four hours, and two 10-minute paid breaks for shifts longer than nine hours.
"The KFC Class Action has been lodged because for too long KFC and KFC franchisees have not been providing their workers the breaks they are entitled to," said Gordon Legal on its website.
"It's time that KFC workers get what they are owed."
The Shop, Distributive and Allied Employees' Association (SDA) claims that the class action will provide more than 80,000 workers across all of KFC's Australian stores their lost wages because of denied rest breaks.
"We owe it to our members and all workers in the fast food and retail industries to put an end to systemic wage theft for good," said SDA National Secretary Gerard Dwyer in a previous statement.
Terms of settlement
The class action invited employees between 2017 and 2024 who did not receive all their breaks to register for the lawsuit.
Collins said in its statement that if fewer than the expected group members registered, there will be a reduction in the settlement amount.
"If more than expected group members register, Collins Foods, will have the option to terminate the settlement or make additional payment," it added.
"Collins Foods remains committed to compliance with all applicable workplace laws and to supporting its team members."
