$28.8 Million Settlement Reached in KFC Rest Breaks Class Action

Tens of thousands of mostly young fast-food workers could receive compensation after Shine Lawyers and Gordon Legal (with the support of the Shop Distributive and Allied Employees Association (SDA)) secured a $28.8 million settlement in the KFC Rest Breaks Class Action, resolving claims that employees were allegedly not provided with legally required rest breaks while working at the fast-food chain.

The in-principle settlement has been agreed with KFC and more than 80 franchise operators nationwide. If approved by the Federal Court, it is expected to provide compensation to around 90,000 current and former KFC employees.

The proposed settlement was announced in the Federal Court on Friday following several months of negotiations between the parties.

At the next hearing, the Court will be asked to approve a registration process allowing eligible workers to come forward and register their claims for compensation.

For Shine Lawyers’ class action group member, Lily O’Sullivan, the settlement is about standing up for workplace rights many young workers may not realise they have.

“Like many young people, this was one of my first jobs and you tend to trust that everything is being done properly,” O’Sullivan said.

“But those rest breaks weren’t a bonus, they were something workers were legally entitled to.

“I’m proud I stood up and brought attention to it,” she said.

Craig Allsopp, Head of Class Actions at Shine Lawyers said the outcome demonstrates the impact collective legal action can have in enforcing workplace protections.

“This is a significant settlement that could deliver compensation to tens of thousands of workers across Australia,”

“It also reinforces that workplace entitlements, including rest breaks, must be respected,” said Allsopp. Josh Cullinan from RAFFWU also shared his views on the victory, saying “RAFFWU exposed the systemic issues at KFC with rest breaks. Our investigation and action with Shine Lawyers underpins this outcome. Every member of RAFFWU should be proud their Union was the foundation of this outcome.”

Workers who were employed at KFC between 2017 and 2023 may be eligible to participate in the settlement if it is approved by the Federal Court. While a formal registration period is expected to open soon, employees are in the meantime encouraged to register their details on either Shine’s website (link below) or Gordon Legal’s website.

More information: KFC Breaks Class Action | Shine Lawyers