The supermarket giant’s latest issue adds to mounting legal and financial pressure
Woolworths is facing a new class action in the Federal Court with the supermarket accused of underpaying staff in South Australia.
The claim, filed by Shine Lawyers on behalf of current and former employees, centres on alleged shortfalls in pay linked to work performed on Sundays.
The case focuses on a now-repealed South Australian law that treated Sundays as public holidays, potentially entitling affected workers to higher penalty rates.
Woolworths said the proceedings involve one of its subsidiaries and are based on interpretations of that former state legislation.
Australia’s largest supermarket chain maintains that it does not consider the action to be “market-sensitive” and has confirmed it will contest the claims in court.
Investors reacted cautiously to the latest development, with Woolworths shares falling around 2.5% in Monday trading as the market digested the prospect of further legal and reputational fallout.
The company has already warned of a significant financial hit tied to historical wage issues.
Regulators are also circling. The Fair Work Ombudsman has launched separate legal proceedings against both Woolworths and rival Coles over alleged underpayments, signalling a broader crackdown on wage compliance in the supermarket sector.
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