ALDI to settle 32k-worker class action for $55m

Discount supermarket chain ALDI and tens of thousands of workers have reached a proposed settlement in class action proceedings over alleged unpaid pre- and post-shift work.

More than 30,000 current or former employees at Australian ALDI locations may be compensated for work conducted outside of their rostered hours following a class action launched by the Shop, Distributive and Allied Employees’ Association (SDA) and backed by law firm AJ Macken & Co.

The dispute emerged from allegations that four employees at the ALDI Prestons Distribution Centre conducted work outside of their allocated shift without initial remuneration, which saw the Federal Circuit and Family Court agree with the SDA that they were entitled to be paid for the work.

According to the SDA, ALDI reviewed pre-shift work performed by some warehouse employees, and compensated some current and former employees.

The union then launched proceedings in the Federal Court in October 2023, arguing that similar cases had affected store and warehouse employees nationally.

In the proceedings, ALDI advised that approximately $28.9 million had already been paid to some affected workers, with the agreement now dictating a further $26.3 million payable, as well as interest. A separate contrition payment of $1.5 million to go towards the SDA’s legal and project costs is also outlined in the proposed agreement.

ALDI agreed to the settlement without making admissions, according to the SDA.

SDA national secretary Gerard Dwyer said the proposed settlement “is a major result for tens of thousands of current and former ALDI workers”.

He said: “The SDA backed workers from the beginning, funded this class action and pursued the case so that workers would receive the benefit of the outcome.”

“All workers should be paid for every minute they are required to work.”

The matter will return to court in October for final approval. During this time, employees may remain part of the class action, object to the proposed settlement, or opt out of the class action, with a deadline of 12 August 2026.

Should the settlement be approved, ALDI will fulfil a total settlement of $55 million.

“This outcome sends a clear message to every major employer: work performed before or after a rostered shift is still work, and it must be paid,” Dwyer said.

The SDA supported class action proceedings launched by Gordon Legal in December 2025 on behalf of more than 15,000 Grill’d employees based on allegations that workers were not allowed rest breaks as entitled under their enterprise bargaining agreement.

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