KFC operator Collins Foods issues statement on class action settlement

Collins Foods said it makes no admission of liability.

Collins Foods Limited advises that it has entered into a binding Heads of Agreement (HOA) with the applicants to the proceedings (Applicants) to settle the employee class action regarding 10-minute rest breaks commenced against Collins Foods and other respondents in December 2023.

The agreed settlement amount payable by Collins Foods (for its relevant Group entities) is up to AUD $9 million (Settlement Amount) towards a multi-party settlement. The settlement is to be recorded in a Settlement Deed between Collins Foods, the Applicants and other respondents to the proceedings, and is subject to approval by the Federal Court of Australia.

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. 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.

Further updates will be provided to the market as appropriate.