“Aldi settles ‘start shift early’ underpayments claim for $55m”, 16 July 2026

Aldi will pay $55 million to thousands of warehouse and store workers as part of a settlement of underpayment claims, despite previously dismissing union estimates it had shortchanged workers $10 million as “significantly inflated”.

The supermarket giant ... reached an in-principle deal with the Shop Distributive and Allied Employees Association over Federal Court action that alleged 32,000 current and former employees had been directed to do unpaid work before and after shifts.

The settlement, which makes no admission of underpayments, means Aldi will have to pay an extra $26 million on top of the $29 million it has already paid to employees.

Claims of pre- and post-shift unpaid work is a common issue in the retail sector and the SDA has made similar claims in an ongoing court action against McDonald’s.

SDA national secretary Gerard Dwyer, whose union funded the class action since 2023, said the settlement was a “major result”.

“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,” he said.

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

The deal also requires Aldi pay the SDA $1.5 million on top of the $55 million, marking the largest payment to a union from an underpayment settlement to date…

Aldi was contacted for comment.

The class action was launched after a Federal Court judgment in 2022 finding Aldi had breached workplace laws by directing Sydney warehouse staff to start work 15 minutes before their rostered shift…