KMART CASE

Adero Law says a class action accusing Kmart of failing to pay salaried managers for actual hours worked, including while at home, will test whether it has ‘adopted in practice’ lessons drawn from underpayment cases targeting Coles and Woolworths.

In a case potentially affecting thousands of current and former salaried managers, Adero accuses Kmart of requiring them to work up to 60 hours per week and perform higher duties without additional pay, and in 2022 reducing their monthly rostered hours ‘without any corresponding reduction in workload’.

We will keep you updated on this case.

MCDONALD’S TO BARGAIN FOR FIRST NATIONAL DEAL IN 13 YEARS

A landmark decision by the Fair Work Commission has cleared the way for almost all of McDonald’s 110,000 employees to negotiate together for a single bargaining agreement.

The Shop Distributive and Allied Employees Association said that the single interest authorisation is a ‘very significant development’ that will see one of Australia’s largest networks of employers negotiating ‘for the first time since McDonald’s walked away from bargaining in 2019’.

WAGE UNDERPAYMENT IN AUSTRALIA

Wage underpayment occurs when an employer fails to pay an employee the full amount they are entitled to under applicable laws, industrial instruments or agreements. 

Expanded Powers under Wage Theft Laws:

The Fair Work Act was amended on 1 January 2025 to introduce criminal offences for intentional underpayment of employee’s wages and certain entitlements. 

Intentional underpayments, where it can be demonstrated that employers knowingly engaged in the conduct, can result in criminal charges, including jail time and significant fines.

Managing Underpayment Risks:

A number of high-profile cases have drawn significant media attention, raising public awareness of wage underpayments and increasing pressure on employers to comply with workplace laws.

Prevention is better than cure:

To mitigate the risks of wage underpayment, employers should adopt pro-active compliance measures by conducting regular payroll audits.

Employers should review payroll systems and processes to ensure compliance with award, agreements and the Fair Work Act. This can help identify and rectify errors before they escalate.

Contact us if you require assistance in award interpretation and compliance. 

AWARDS & CLASSIFICATIONS

In the constantly changing compliance environment, it is important to take some time to review your business systems.  You need to ensure that they reflect best practice and are appropriate for the business size, style and operation. 

It is staggering how quickly a small change that is missed can lead to larger issues down the track. 

We will focus on Awards and Classifications. Firstly, it is important for businesses to classify employees using the correct Award.   Secondly time needs to be taken to understand the classifications within the Award to ensure that you are meeting minimum requirements.

Best Practice Tip:

When reviewing classifications, it is important to review all classifications before selecting one to apply to the job role. This is because many classifications will have the same or very similar tasks listed in them, the difference often comes down to the level of responsibility, accountability or autonomy.

FAIR WORK CHANGE RULED OUT, AMID SURGE OF AI CLAIMS

Workplace Relations Minister Amanda Rishworth has ruled out reforming the no-costs rules or reducing workplace rights to curb a surge in AI-generated unfair dismissal claims that are swamping the Fair Work Commission (FWC).

She said the Government was still consulting on how to assist the Commission after it has been warned that it is facing an unsustainable increase in baseless claims written by AI that were delaying cases.

The Acting Deputy President of the FWC said they were dealing with about 50,000 claims across all jurisdictions, a volume he said the commission believed was ‘unsustainable’. 

CONSUMER PRICE INDEX, AUSTRALIA

In the 12 months to March 2026 the Consumer Price Index (CPI) rose to 4.6%, up from 3.7% in the 12 months to February 2026.

The CPI for Hobart for the same period was 5.1%.

WORKPLACE MYTH

‘We pay above Award, so we don’t have to worry about the Award’.

When an employer chooses to pay an employee above Award entitlements, the employee must still be paid at least what they would have been paid (including overtime and penalty rates). Other terms of the Award, eg: breaks, hours of work, and consultation obligations in relation to workplace changes will continue to apply.