Up to 6,000 Kmart managers reportedly affected by the underpayment

Kmart Australia is facing a class action suit alleging that it underpaid thousands of current and former salaried managers in accordance with their entitlements.

Adero Law has announced that it is filing proceedings in the Federal Court, accusing Kmart of multiple breaches under the 2020 General Retail Industry Agreement (GRIA) and the Fair Work Act 2009.

According to Adero, Kmart allegedly regularly directed salaried employees to work during their meal breaks, and to continue working pre-shift and post-shift hours to complete their daily duties without compensation.

Employees were also not compensated for their entitled penalty rates when working shifts that should incur penalties.

"Cumulatively, we allege group members were exceeding 40 working hours per week without compensation," the law firm said on its website.

Other alleged contraventions by Kmart include directing staff to take on the responsibilities of a more senior employee manager without being paid the higher duties entitlement.

Employees were also instructed to complete work from home, including rostering, administration work, and scheduling any staff availability issues without compensation.

Adero estimates that the alleged contravention impacted 5,000 to 6,000 current and former Kmart full-time employees, who were employed in positions such as overnight managers, department managers, operations managers, administration managers, customer...

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