Court finds Aldi in violation of employment laws

Following a Federal Court’s finding that Aldi had violated employment laws, the grocery store chain may be required to pay millions of dollars in damages.

The court has found Aldi underpaid warehouse workers by directing employees to begin work 15 minutes before their rostered starting time.

Workers at a Sydney distribution centre were required to undertake a number of tasks before clocking on, including completing safety checks on forklifts, checking communication devices and undertaking a group warm-up activity.

Aldi claimed it was not underpaying its workers and that employees were only expected to be ready to commence work at the start of their rostered shifts.

But Judge Douglas Humphreys said he was satisfied there was a “clear implied direction” that employees had to arrive early and undertake those tasks, and that a consistent failure to comply would lead to disciplinary action.

“There was no personal benefit to the employee in the activities carried o ut. Each was to the benefit of the employer,” he said in his findings.

“In these circumstances, the court is satisfied that the activities carried out constitute work.”

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The retail and warehouse union claims Aldi owes its distribution centre workers up to $10 million in unpaid wages for working an extra 10 minutes per shift.

It says the decision affects about 4000 current and former workers.

“Aldi joins a long list of large employers found to have underpaid their workers,” SDA NSW branch secretary Bernie Smith said on Wednesday.

“Unlike the way the multinational likes to present itself in its advertisements, it turns out Aldi is not good and not different.

“Multinational companies operating in Australia can’t set their own rules.”

The union said it worked through calculating individual back-pay amounts for its members.

Judge Humphreys is yet to make any orders regarding penalties. The parties are scheduled to retu rn to court on Friday for a directions hearing.

Aldi has been contacted for comment.

With AAP. (Content has been tweaked for length and style.)