KFC workers urged join class action for slice of $28.8 million payout

Tens of thousands of Australian workers at KFC stores could be eligible for a sizeable compensation payout.

A $28.8 million settlement has been reached in a class action lawsuit brought by Shine lawyers and Gordon Legal on behalf of the Shop, Distributive and Allied Employees Association union and KFC workers.

The lawsuit claimed KFC workers were not given the 10-minute rest breaks they were legally entitled to under the Fair Work Act when working a shift of four hours or more.

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The class action covers KFC workers who were employed by KFC between October 2017 and December 2023 who were not given rest breaks.

Both parties have agreed to the $28.8 millon settlement, which also must be approved by the Federal Court.

A deadline is now looming for KFC workers to sign up to the class action. Workers must register to be a member of the class action before 4pm on June 26 in order to get a slice of the compensation payout.

Final approval for the settlement is scheduled to come before the Federal Court in September.

If approved, class action members will be assessed individually for eligibility and receive any payout from late 2026 to early 2027.

Gordon Legal is urging KFC workers who believe they are eligible for compensation to sign up to the class action.

In March 2026, Collins Foods Limited, which operates about 40 per cent of the KFC outlets in Australia, told investors that it had entered into an agreement to pay $9 million towards the settlement.

"The structure of the settlement includes a cap and collar with respect to the number of group members that register to participate in the class action," the business told the ASX.

"If fewer than expected group members register there will be a reduction in the Settlement Amount, and if more than expected group members register, Collins Foods (collectively with the other respondents to the Settlement Deed), will have the option to terminate the settlement or make an additional payment."

"In agreeing to resolve the litigation, Collins Foods makes no admission of liability. The terms of the settlement are otherwise confidential."

"Collins Foods remains committed to compliance with all applicable workplace laws and to supporting its team members."

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