Aldi to pay $55 million to settle Australian wage underpayment lawsuit

Aldi has agreed to a $55 million settlement to resolve a large-scale class action lawsuit involving approximately 32,000 current and former employees in Australia. The litigation, initiated by the Shop, Distributive and Allied Employees Association (SDA Union), follows investigations into underpayment offences.

The Federal Court found that employees, including warehouse workers, were required to perform tasks before and after their rostered shifts without receiving proper compensation or consequential benefits. Justice McElwaine approved the settlement, noting it provides a fair calculation methodology including interest, with no deductions for litigation costs or commissions.

Payments are required to be completed by March 31, 2027. Aldi stated that it began making repayments in 2022 after discovering evidence of underpayments.