In a case that affects 32,000 employees, ALDI Australia has agreed to a proposed settlement worth around $55 million. The agreement follows a long-running class action over claims workers were not paid for duties performed before and after their scheduled shifts. 

The settlement, which remains subject to Federal Court approval, affects tens of thousands of current and former employees across the retail giant’s store and warehouse divisions. 

The class action was launched by the Shop, Distributive and Allied Employees Association (SDA) and alleged employees were required to perform unpaid “pre-start” and “post-finish” activities, including tasks completed outside their rostered hours.

ALDI has already paid approximately $28.9 million to affected workers, with the proposed settlement expected to deliver additional payments of around $26.3 million, plus interest and a contribution towards legal and project costs.

The dispute follows a 2023 Federal Court decision involving ALDI distribution centre workers, which found certain pre-shift activities were considered work and should have been paid.

The case highlights increasing scrutiny on workplace compliance, payroll systems and employee time recording, particularly across large retail and logistics businesses where workers may perform preparation tasks before official shift start times.

For retailers, the settlement reinforces the importance of ensuring employees are compensated for all required duties whether it falls under preparation, safety checks, meetings or other activities performed outside rostered hours