[Australia] Court ruling leaves Aldi with $10m underpayment bill

Australia’s Federal Court has found supermarket chain Aldi guilty of breaching employment laws by insisting that employees begin work before they were scheduled to clock on, Better HR reports.

The ruling could potentially cost Aldi up to $10 million dollars in backpay for employee underpayments.

The SDA Union for retail, fast food and warehousing workers reportedly claimed that workers were required to complete safety checks on forklifts, check communication devices and undertake a group warm-up exercise before starting their rostered shifts at a Sydney distribution centre. This forced employees to work an extra 10 unpaid minutes per shift.

Aldi has refuted claims that it was underpaying its workers and stated that employees were only expected to be ready to commence work at the start of their rostered shifts.

Judge Douglas Humphreys, however, found there was a “clear implied direction” that employees had to arrive early and undertake stipulated tasks and that a consistent failure to comply would lead to disciplinary action.

“There was no personal benefit to the employee in the activities carried out. Each was to the benefit of the employer,” Judge Humphreys said.

“In these circumstances, the court is satisfied that the activities carried out constitute work.”

The retailer said it respected the court’s decision and will give backpay to affected employees.

“We are reviewing the implication of the court’s decision on other employees across our business and will seek to apply the principles of the court’s decision fairly to any other affected employees,” an Aldi spokesperson said.

Source: Better HR

(Quotes via original reporting)

Australia’s Federal Court has found supermarket chain Aldi guilty of breaching employment laws by insisting that employees begin work before they were scheduled to clock on, Better HR reports.

The ruling could potentially cost Aldi up to $10 million dollars in backpay for employee underpayments.

The SDA Union for retail, fast food and warehousing workers reportedly claimed that workers were required to complete safety checks on forklifts, check communication devices and undertake a group warm-up exercise before starting their rostered shifts at a Sydney distribution centre. This forced employees to work an extra 10 unpaid minutes per shift.

Aldi has refuted claims that it was underpaying its workers and stated that employees were only expected to be ready to commence work at the start of their rostered shifts.

Judge Douglas Humphreys, however, found there was a “clear implied direction” that employees had to arrive early and undertake stipulated tasks and that a consistent failure to comply would lead to disciplinary action.

“There was no personal benefit to the employee in the activities carried out. Each was to the benefit of the employer,” Judge Humphreys said.

“In these circumstances, the court is satisfied that the activities carried out constitute work.”

The retailer said it respected the court’s decision and will give backpay to affected employees.

“We are reviewing the implication of the court’s decision on other employees across our business and will seek to apply the principles of the court’s decision fairly to any other affected employees,” an Aldi spokesperson said.

Source: Better HR

(Quotes via original reporting)