Up to 6,000 Kmart managers reportedly affected by the underpayment
Kmart Australia is facing a class action suit alleging that it underpaid thousands of current and former salaried managers in accordance with their entitlements.
Adero Law has announced that it is filing proceedings in the Federal Court, accusing Kmart of multiple breaches under the 2020 General Retail Industry Agreement (GRIA) and the Fair Work Act 2009.
According to Adero, Kmart allegedly regularly directed salaried employees to work during their meal breaks, and to continue working pre-shift and post-shift hours to complete their daily duties without compensation.
Employees were also not compensated for their entitled penalty rates when working shifts that should incur penalties.
"Cumulatively, we allege group members were exceeding 40 working hours per week without compensation," the law firm said on its website.
Other alleged contraventions by Kmart include directing staff to take on the responsibilities of a more senior employee manager without being paid the higher duties entitlement.
Employees were also instructed to complete work from home, including rostering, administration work, and scheduling any staff availability issues without compensation.
Adero estimates that the alleged contravention impacted 5,000 to 6,000 current and former Kmart full-time employees, who were employed in positions such as overnight managers, department managers, operations managers, administration managers, customer service managers, assistant store managers, and store managers.
"We encourage both current and former staff to contact us to see if they are eligible to participate in the Class Action," it said on the website.
Over 100 group members have registered for the class action, according to Adero, which estimates that the company owes them significant amounts in respect of underpayments, interest, and penalties.
Meanwhile, a spokesperson for Kmart told the media that it was aware of the proceedings and was taking the matters "very seriously."
"Kmart is committed to its team members being paid correctly for the work they perform. As this matter is before the court and we have not yet had an opportunity to review the claims, it is not appropriate for us to comment at this time," the spokesperson told ABC News.
