Current and former KFC workers who alleged they weren’t provided rest breaks during shifts are set to take a share in $28.8 million after the fast food giant moved to settle a major class action suit.
The settlement encompasses more than 80 franchises across Australia, and means some 90,000 current or ex-KFC employees could be entitled to compensation if the Federal Court approves the payout at a hearing early next month.
It marks the latest development in the class action, which was launched back in 2023 and alleged that KFC failed to provide paid 10-minute rest breaks to Aussie staff for six years from 2017 to 2023.
The alleged failure to give paid rest breaks means the fast food chain contravened the Fair Work Act 2009, the class action claimed.
Negotiations have been led by Gordon Legal and Shine Lawyers with the backing of the union for Australian retail workers. Former KFC worker Roshanpal Singh was the lead applicant in the action.
Responding to news of the upcoming settlement, Singh said: “Like a lot of young people, [KFC] was one of my first real jobs. You don’t question things; you just show up and do what you’re told.”
“But looking back, those rest breaks weren’t a luxury; they were something we were legally owed,” he added, per the Australian Financial Review.
If approved, the $28.8 million payout will be finalised at another hearing in early-April, where the court will be asked to order a “registration period”.
It’s from this point that affected workers can register their interest for compensation.
Are you eligible for the KFC class action compensation?
Workers are eligible for the payout if they were employed at an Aussie KFC restaurant between October 2017 and December 2023, and were not provided paid 10-minute rest breaks during shifts lasting four hours or more.
According to the class action, more than 90,000 KFC workers across 80 Aussie stores fall within that eligibility criteria.
If you’re an affected worker, you can register your interest for free online via Gordon Legal’s website. Right now, you can only register your details, with formal registration opening after the court approves the settlement next month.
The compensation will be dolled out in-part by Collins Foods — which is KFC’s biggest franchisee — with the remainder given by KFC’s head office and other franchisees.
“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,” Gordon Legal spokesperson Guy Tiffany said.
“Regardless of your size and brand power, compliance cannot depend on convenience.”
McDonald’s is currently involved in a similar class action about paid rest breaks, also led by Shine Lawyers. The Federal Court is expected to hear that matter in May.
Lead images: Getty Images and HBO
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