Underpayment claims dominate as sexual harassment emerges as growth area in Australian employment class actions

Employment-related class actions remained strong in FY26, with 13 new proceedings filed, representing the second most prevalent category of new class actions in the review period (behind consumer claims). Several themes stood out this year:

• underpayment and entitlement claims continue to dominate in the wake of the Coles and Woolworths litigation, and are expected to spread beyond the retail sector
• junior doctors' underpayment claims remain the largest cohort, although these claims are mature and are proceeding to settlement, and
• workplace sexual harassment claims have emerged as a key growth area, with several proceedings on foot in the public and private sectors.

Employment class actions filed

Last year's headline figure of 25 filings was inflated by 21 related junior doctors' underpayment claims filed by the same firm on the same day against various Victorian public health services providers.

By comparison, the number of new proceedings commenced in FY26 confirms that employment claims are increasingly prevalent and are extending beyond the health care sector into retail, resources and hospitality.

Expansion of employment class actions

Underpayments and entitlements claims

Underpayment class actions increased again in FY26, continuing the upward trajectory observed over recent years. The landmark decision handed down last year in the Supermarkets decision...

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