US EditionWoolworths, Coles’ underpayment scandal bill could exceed $1 billion
Woolworths and Coles face combined remediation costs exceeding $780 million after Federal Court finds failure to track overtime and entitlements for nearly 30,000 salaried managers.
- On Friday, the Federal Court of Australia found Woolworths Group and Coles Group failed to keep accurate records of rosters, overtime, and entitlements, affecting nearly 30,000 staff with over 27,000 managers owed back pay.
- The litigation began with class actions and Fair Work Ombudsman enforcement in 2019–2020, consolidating four proceedings started by Adero Law and the Fair Work Ombudsman alleging systemic underpayment of salaried managers.
- On Monday, Woolworths Group and Coles Group disclosed a combined set-aside of $780 million, with Woolworths estimating $180–$330 million post-tax plus $140–$200 million in interest and taxes, and Coles flagging $150–$250 million with $31 million already paid.
- Coles Group has indicated it may appeal the Federal Court decision, increasing penalties risk and tougher claims for employers relying on annualised salaries; a case management hearing is set for October 27.
- This decision will force significant changes to retail practice across Australia, prompting the Australian Retailers Association and National Retail Association to urge the Fair Work Commission to simplify the GRIA while legal experts expect tougher compliance standards.
23 Articles
23 Articles
Why a possible $1 billion bill for Coles and Woolworths has put a common employment clause in the spotlight
Australian supermarket giants Woolworths and Coles now face the prospect of a combined bill exceeding A$1 billion in relation to the alleged underpayment of close to 30,000 staff over several years. These alarming liabilities were raised in statements issued by each company to the Australian Securities Exchange (ASX) on Monday, with updates to their estimated costs in the wake of a key Federal Court ruling on Friday. It’s been a long-running mat…
Financial fallout of Woolworths, Coles underpayments could climb past $1 billion
Supermarket giants Coles and Woolworths expect to spend hundreds of millions of dollars more to repay staff the companies underpaid, following a legal judgement experts say could have wide-reaching implications.
Sydney Morning Herald
WA today‘Unions will go looking’: Woolies’, Coles’ $1b wage scandal could spark class action wave
Unions and employment lawyers have warned about the implications of a landmark Federal Court ruling that has forced Coles and Woolworths to set aside millions more for historical underpayments.
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