A class action lawsuit has been filed against Woolworths and McDonald’s over alleged staff underpayment in South Australia.
In the filing, Shine Lawyers alleged that the two companies underpaid employees in the state, citing the 1910 Public Holidays Act that treats every Sunday as a public holiday.
In a statement, Woolworths confirmed that the legal proceedings had been filed against it.
“Woolworths Group does not believe the proceedings are market sensitive and will defend the proceedings,” it said.
The grocery giant recently reported a 2.7 per cent increase in its group sales for the first fiscal quarter, driven by food sales and the growth of its on-demand services.
A McDonald’s spokeswoman also said the company was aware of the class action and would defend the claim.
A case management hearing will take place in the Federal Court on Friday. If upheld by the court, the case could apply to all businesses that operate on Sundays in the state.
One class action lawyer spoke anonymously to the Australian Financial Review that the case would result in “the biggest audit exercise ever in the country”.
“It would mean superannuation, workers’ compensation are wrong [in South Australia]. It just snowballs, all your accruals on termination are wrong,” the lawyer said.
According to the AFR, the allegations have sparked controversy, with employers and some lawyers saying they exploit obscure loopholes in workplace law and undermine genuine underpayment matters.
This article was first published on sibling website Inside FMCG.
