Chemist Warehouse franchisees have been hit with a lawsuit declaring they underpaid workers at four of its South Australian stores, a case that could have ramifications across 350 stores, to the tune of $10 million in back payments.

The Shop Distributive and Allied Employees Association filed the suit against four South Australian franchisees, owned by co-founders Jack and Sam Gance, and group head Mario Verrocchi.

The lawsuit claims that, in 2017 the Chemist Warehouse stores instructed nine staffers to gain a Certificate III in Community Pharmacy, in order to dispense medication, among other higher duties.

The SDA claims the workers weren’t paid in line with their higher duties. Further, it argues that, should these claims be upheld, the ruling means that 1,000 workers across 350 stores may be in the same situation.

The union said this average $5,000 payment could amount of $600,000 in South Australia, and $10 million nationally.

“We’re alleging that Chemist Warehouse knowingly ripped thousands out of the pockets of its employees by directing them to work above their classification level,” SDA SA secretary Josh Peak said.

“Being directed to work above your pay grade is not ‘good experience’ or ‘an
opportunity’, it’s exploitation and it’s unlawful”, he said, adding the underpayment “isn’t a mistake or an oversight, it’s another shocking example of wage exploitation by a national brand”.

Chemist Warehouse itself is not a party to the proceedings, and a spokesperson said the franchisees “reject the allegation of any underpayment and will defend their position vigorously.”

The case will be heard in August.