About 90,000 former, current employees eligible for compensation
The operator of KFC restaurants in Australia is set to pay $28.8 million to settle a class action alleging that it did not provide current and former employees with rest breaks.
Gordon Legal, which ran the case with Shine Lawyers, confirmed the development on Monday, saying that the settlement has been agreed with KFC and more than 80 franchise operators across the country.
Approximately 90,000 current and former KFC team members will be eligible for compensation under the settlement, which remains pending before the Federal Court, according to Gordon Legal.
"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," said Guy Tiffany, senior associate at Gordon Legal.
The class action alleges that KFC failed 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.
"Regardless of your size and brand power, compliance cannot depend on convenience," Tiffany said. "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."
The settlement amount is significantly higher than the $9-million figure that Collins Foods, the operator of KFC restaurants, announced last week.
The operator, in its previous statement, made no admission of liability despite agreeing to resolve the litigation.
"Collins Foods remains committed to compliance with all applicable workplace laws and to supporting its team members," it previously said.
Meanwhile, the Shop, Distributive, and Allied Employees Association (SDA) said it welcomed the $28.8-million settlement.
"It will enable payments to thousands of existing and former KFC employees across the country," said SDA National Secretary Gerard Dwyer.
"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."
