Woolworths to settle $300m class action suit over underpaid wages

Supermarket chain Woolworths has provisionally settled a class action suit involving the reported underpayment of about $300m in wages to thousands of employees, the company said.

The settlement still requires approval from the court and is subject to proceedings before the Fair Work Ombudsman. Apart from the class action suit, the FWO also sued the company over the breach and is now demanding that the employer face penalties and that workers be paid back as recompense. 

Woolworths said it will accord some 20,000 current and former employees an "ex-gratia payment" of $2,500, along with retirement benefits. Recipients must have worked for the company for at least six months between January 2010 and September 2013.

The discrepancy in wages was first discovered during an internal audit of the salaries of 5,700 staff members. The company had purportedly failed to take into account workers' overtime pay.

"We’re unequivocally sorry and we’re going to repay the money, no questions asked," said Woolworths CEO Brad Banducci back in October 2019.

The class action suit was filed by Canberra law firm Adero Law in November of the same year.