Brisbane-based Collins Foods Limited, the operator of KFC restaurants in Australia, has entered into a $9 million settlement with staff over a class action lawsuit, but makes no admission of liability.

Law firms Gordon Legal and Shine Lawyers spearheaded the class action lawsuit on behalf of KFC workers across the country, who they allege were not provided with 10-minute rest breaks when working.

The class action was open to those who worked at KFC between 2017 and 2024, with Shine Lawyers saying the action “alleges that KFC and its franchisees systematically denied workers their right to paid breaks”.

You might like

Business

Qantas agrees to $105m payout over COVID-19 flight credits

Business

Brisbane company pushes further into Europe

ASX-listed Collins Foods – which this week announced a renewed push into Europe – agreed to pay up to $9 million towards a multi-party settlement, subject to Federal Court approval.

“In agreeing to resolve the litigation, Collins Foods makes no admission of liability,” Collins Foods said.

“Collins Foods remains committed to compliance with all applicable workplace laws and to supporting its team members.”

Gerard Dwyer, the national secretary of the SDA union, which represents fast food workers, said he welcomed the settlement.

“It will result in payments of up to $30,000 to existing and former KFC employees,” he said.

He also urged McDonald’s to settle a similar class action.

Shine Lawyers is running a class action on behalf of McDonald’s workers who worked for the business between 2015 and 2022, alleging staff were not given a paid 10-minute break when working a shift of four hours or more.

“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 were not remunerated for paid rest breaks to which they are entitled,” Dwyer said.