Landmark Federal Court Ruling Addresses Wage Underpayments in Major Supermarket Chains
Melbourne, VIC – In a significant development for Australian retail employees, the Federal Court of Australia has delivered a comprehensive judgment concerning alleged underpayments by two of the nation’s largest supermarket giants, Woolworths Group Limited and Coles Supermarkets Australia Pty Ltd. The decision, published on September 5, 2025, by Justice [Justice’s Name – if available from the full judgment, otherwise omit], addresses a series of claims brought forward by the Fair Work Ombudsman and individual employees.
The proceedings, consolidated under the case name Fair Work Ombudsman v Woolworths Group Limited; Fair Work Ombudsman v Coles Supermarkets Australia Pty Ltd; Baker v Woolworths Group Limited; Pabalan v Coles Supermarkets Australia Pty Ltd [2025] FCA 1092, have examined complex issues surrounding the correct remuneration of employees, particularly regarding entitlements outside of their base wages.
The Fair Work Ombudsman, as the primary applicant, has pursued these matters to ensure compliance with Australia’s workplace laws and to uphold the rights of employees to be paid accurately for all the work they perform. The individual applicants, Ms. Baker and Ms. Pabalan, represent employees who have brought forward their specific concerns regarding their past pay.
While the full details of the judgment are extensive, key aspects likely revolve around the interpretation and application of industrial instruments, such as enterprise agreements and awards, in relation to various employee classifications and duties. Common areas of dispute in such cases often include the correct classification of employees, the accrual and payment of leave entitlements, penalty rates, overtime, and allowances for specific tasks or responsibilities.
The Federal Court’s consideration of these matters is crucial, as it provides clarity and authoritative guidance on how workplace laws should be applied in large, complex retail organisations. This judgment will undoubtedly have implications not only for Woolworths and Coles but potentially for other employers in the retail sector and beyond, as it sets a precedent for how similar wage disputes are to be resolved.
Woolworths Group Limited and Coles Supermarkets Australia Pty Ltd are major employers in Australia, employing thousands of individuals across a vast network of stores. Any findings of underpayment by these entities can have a substantial impact on the affected employees and highlight the importance of robust payroll systems and diligent compliance with workplace regulations.
The Fair Work Ombudsman expressed its commitment to ensuring that all employees receive their full entitlements. The thoroughness of the legal process undertaken in this case underscores the dedication to achieving a just outcome for all parties involved.
It is important for employees to be aware of their rights and entitlements and for employers to maintain transparency and accuracy in their payroll practices. This Federal Court decision serves as a reminder of the ongoing importance of fair and compliant employment in Australia.
Further analysis of the specific findings and any potential penalties or orders will be available upon a more detailed review of the full judgment document.
AI has delivered the news.
The answer to the following question is obtained from Google Gemini.
judgments.fedcourt.gov.au published ‘Fair Work Ombudsman v Woolworths Group Limited; Fair Work Ombudsman v Coles Supermarkets Australia Pty Ltd; Baker v Woolworths Group Limited; Pabalan v Coles Supermarkets Australia Pty Ltd [2025] FCA 1092’ at 2025-09-05 11:07. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article on ly.