Federal Court approves 30-proceeding settlement over alleged unpaid overtime for doctors
A $135 million settlement over unpaid overtime for junior doctors in Victorian hospitals has been approved, marking one of Australia's largest employment law resolutions.
The Federal Court gave final approval on October 31 to a settlement that will compensate thousands of junior doctors across Victoria who alleged they were systematically underpaid for overtime work. The resolution brings to a close 30 separate class actions against public health services, offering critical lessons for HR leaders navigating complex rostering and payment obligations.
At the heart of the dispute was a straightforward claim with far-reaching consequences: junior doctors said they worked un-rostered overtime that hospitals were required to pay but didn't. The Australian Salaried Medical Officers' Federation, along with individual doctors, argued that health services including Peninsula Health, Monash Health, and Western Health failed to compensate doctors for overtime they were authorised to perform, alleging contraventions of three industrial instruments and the Fair Work Act.
The litigation exposed thorny questions about how overtime obligations are interpreted and enforced. The court noted that hospitals raised various defenses, including disputes over the construction of overtime provisions, the effect of their overtime policies, and estoppel arguments. For employers, the case underscored the risks of...
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