AUSTRALIA | The Shop, Distributive and Allied Employees Association (SDA) has secured Federal Court approval of a major settlement expected to bring ALDI’s total remediation liability to approximately AUD 55.2 million.
In a judgment handed down on the 23rd of October 2026, the Federal Court approved the settlement covering approximately 32,300 current and former ALDI employees across Australia.
This followed years of legal action over unpaid work employees performed before and after their rostered shifts.
Unlike many class actions, workers will not have any legal fees or litigation funding commissions deducted from their settlement entitlements.
Under the Federal Court’s orders, ALDI is required to make settlement payments by the 31st of March 2027, or before the date the proceedings are dismissed, whichever is later.
SDA National Secretary Gerard Dwyer said this is a significant victory for tens of thousands of ALDI workers who deserve to be paid for every minute they work.
“For too long, workers across the retail industry have been expected to undertake tasks before or after their rostered shifts without being properly compensated. The principle is simple: if you’re working, you should be getting paid. Employers cannot expect workers to give away their time for free,” said Dwyer.
“ALDI is one of the largest supermarket operators in Australia. Individual workers should not have to take on a multinational employer to recover their lawful entitlements. This outcome demonstrates the importance of strong unions in holding major employers accountable and ensuring workers receive their full legal entitlements.”
Background – History of SDA proceedings against ALDI
- 2022: The SDA successfully pursued legal proceedings against ALDI in the Federal Circuit and Family Court, establishing that certain pre-shift duties performed by warehouse employees constituted work that must be paid.
- 2023: Following that decision, ALDI commenced a remediation program for affected warehouse and store employees, ultimately paying approximately AUD 28.9 million.
- October 2023: The SDA identified significant gaps in ALDI’s voluntary remediation program, including thousands of former employees who had received no payment. The SDA commenced and funded a national class action and civil penalty proceedings.
- 23 October 2026: The Federal Court approved the settlement in Boi v Aldi Foods Pty Ltd [2026] FCA 1576, covering approximately 32,300 current and former employees and expected to bring ALDI’s total remediation liability to approximately AUD 55.2 million.
The workers covered are those who, in Australia, were employed by ALDI as:
- a store employee at any time between 27 October 2017 and 23 March 2023; or
- a warehouse employee at any time between 27 October 2017 and 30 October 2022.
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