Sydney hospitality giant doesn’t admit responsibility in relation to claims: report
Merivale, the Sydney-based hospitality giant led by pub baron Justin Hemmes, has agreed to pay $19.25 million to settle a class action lawsuit brought by former employees who alleged they were underpaid.
Despite the settlement, the company did not admit liability in relation to the claims, according to the Guardian.
The settlement, approved by the federal court on Friday, concludes a five-year legal battle involving extensive negotiations and legal arguments.
Merivale, which operates more than 90 venues across Sydney—including bars, restaurants, and hotels—faced allegations from lead applicant Raymond Boulos and others regarding pay practices between December 2013 and December 2019.
The lawsuit argued that Merivale’s payment structure during the relevant period was not compliant with the Fair Work Act. Employees claimed they were compensated for a standard 38-hour work week while being required to work at least 50 hours a week without receiving overtime payments.
Court documents indicate that 2,895 former employees registered to participate in the settlement, though it is unclear how many staff members were allegedly affected by the practices in question.
Merivale has consistently denied the allegations, maintaining that no underpayment occurred.
An administrator appointed by the court will oversee the distribution of the settlement funds, including $6.3 million earmarked for the lawsuit’s commercial backers, ICP Funding. Registered participants in the class action will receive letters detailing their estimated underpayments and eligible payouts.
