Some 90,000 current and former KFC workers could be in line for a payout as part of a $28.8 million class action settlement over allegations the fast food giant denied them mandatory breaks.
The lawsuit, launched in 2023, claimed KFC failed to provide paid 10-minute rest breaks to staff across Australia from 2017 to 2023.
Affected KFC team members will be eligible for compensation if the federal court approves the settlement at a hearing in April.
Gordon Legal, which ran the case with Shine Lawyers, backed by the union for Australian retail workers, said the settlement had been agreed with KFC and more than 80 franchise operators.
"We are pleased that KFC and franchisees have taken a sensible approach to this case which will result in a fair outcome for thousands of young workers," Gordon Legal associate Guy Tiffany said in a statement on Monday.
"This is a large settlement which will compensate many thousands of workers, and one which we think will send a powerful message to the fast-food giants and other employers of inexperienced workers.
"Regardless of your size and brand power, compliance cannot depend on convenience."
The settlement was brokered over several months, Gordon Legal said.
A spokesperson for the law firm told AAP Collins Foods, an ASX-listed owner and operator of KFC outlets, would pay a portion of the settlement.
"The remaining will be paid by KFC head office and the other franchisees," the spokesperson said.
KFC Global did not immediately respond to a request for comment.
Collins Foods said earlier it would contribute $9 million to the "multi-party settlement" without admitting liability.
"Collins Foods remains committed to compliance with all applicable workplace laws and to supporting its team members," the company said in a statement.
The settlement is significant but far less than the record-breaking $548.5 million Robodebt class action payout agreed in September after a six-year court battle.
