Merivale settles underpayment lawsuit for 19.25M
Merivale has agreed to pay $19.25 million to settle the lawsuit brought by ex-employees who alleged they were underpaid.
Despite the payment, the company does not admit any liability concerning the claims.
The payout was agreed in the federal court on Friday, after five years of legal arguments and closed-door negotiations.
Lead applicant Raymond Boulos alleged that the company underpaid him and other employees between December 2013 and December 2019.
The lawsuit contended that Merivale's payment structure during this period violated the Fair Work Act. Specifically, it claimed that employees were paid for a 38-hour work week while being required to work significantly more, often exceeding 50 hours, without receiving overtime pay.
While the exact number of affected staff is unknown, court documents indicate that 2,895 people registered to participate in the settlement.
Merivale has consistently denied any wrongdoing, maintaining that no underpayment occurred.
To oversee the distribution of the settlement funds, a court-appointed administrator will oversee the process. The settlement includes a significant payout of over $6.3 million to the lawsuit's commercial backers, ICP Funding.
Registered participants in the class action will receive a letter detailing their estimated underpayment and the amount they are eligible to receive.
Merivale operates over 90 venues across Sydney including renowned restaurants, trendy bars and stylish hotels.
Jonathan Jackson, 2nd December 2024
