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OPT OUT NOTICE TO
CURRENT AND FORMER MCDONALD’S WORKERS
ISSUED BY ORDER OF THE FEDERAL COURT OF AUSTRALIA
You are receiving this notice because you might be a group member in a class action run in the Federal Court on behalf of
current and former McDonald’s workers seeking money compensation.
You have a choice about whether or not to opt out of the class action. You
must make this decision by 19 February 2024.
What cases are being run?
A class action is being run against McDonald’s on behalf
of some people who used to work there. These people are
called
group members
.
The class action seeks money for workers who worked a shift
of four hours or more and didn’t get a ten minute break.
A union, the SDA, is also running several cases about the
same issue.
McDonald’s and the franchisees are defending the cases.
OPTION 1:
Do nothing and stay in the class action
If you are a group member and you do nothing then your
compensation claim will be dealt with in the class action and not the
SDA Actions. This means that:
•
if the class action succeeds, you will be eligible for
money compensation;
•
if you are awarded compensation, it is likely that the Court
will order you to pay
part of it
towards lawyers’ fees and a
funding commission;
•
if the class action fails against McDonald’s, but the SDA Actions
succeed against the franchisees, you may be able to recover
compensation in the SDA Actions from the franchisees;
•
any settlement of the class action does not need your consent
but it does need to be approved by the Court.
What about registration?
If you choose to do nothing then you should also consider registering
with the class action. This is voluntary but it will help ensure that you
get future communications about the class action. You can register at
the Shine Lawyers website
https://shine.com.au/mcdonalds
.
What are the
differences between
the class action and
SDA Actions?
The differences are
summarised at the link here.
You should consider these
differences carefully - they
might affect the amount of
money compensation
you get.
What are my options?
Option 1 - Do nothing and
stay in the class action.
Option 2 – Opt out of the
class action.
Each option is
summarised below.
How do I opt out?
Follow this link to the
Opt-Out Form and submit
it to the Court-appointed
independent solicitor
(contact details to
the right).
I’ve got questions…
The Court has appointed
an independent solicitor to
answer questions. You can
contact
Phi Finney McDonald
at (03) 9134 7100 or via
mcdonaldsclassaction@
phifinneymcdonald.com.
The independent solicitor
can answer questions but
cannot give legal advice.
Am I a group member?
You might be a group member if you did not get a 10 minute
break on shifts of four hours or more.
More details about group membership are given on the
next page.
If you are not sure whether you are a group member, contact
the
independent solicitor (appointed by the Court)
on the
details below
before
making your decision.
OPTION 2:
Opt out of the class action
If you opt out of the class action, you will not be covered by the class
action but you are likely to be covered by the SDA Actions. In that case:
•
if the SDA Actions succeed you will be eligible for
money compensation;
•
if you are awarded money compensation, you will receive
100% of the amount awarded;
•
you will not have to pay a share of your compensation towards
legal fees or funding commissions
•
if the SDA Actions fail, you will not receive any compensation, even
if the class action succeeds; and
•
the SDA does not need court approval to settle your claim nor does
it need your consent, but the SDA will inform the Court
of the terms of any settlement.
What about registration?
If you opt out of the class action and are covered by the SDA Actions,
you can register if you want to. This is voluntary but it will help ensure
that you get future communications about the SDA Actions. You can
register at the SDA website
https://national.sda.com.au/maccas
.
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The Class Action
The SDA Actions
Who is running
the claim?
The solicitors are Shine Lawyers.
A litigation funder called Court House Capital
(CHC)
is
paying the legal costs of the Class Action.
The SDA’s solicitors are Lieschke & Weatherill Lawyers.
The SDA is paying the costs of its cases.
Who is a
group member?
You might be a group member if you work or used
to work at a McDonald’s store and did not get a
paid
10 minute break on shifts of four hours or more.
You are not a group member if:
(a)
you are named as a person on whose behalf the
SDA is seeking money compensation in a different
proceeding; or
(b)
you were a financial member of the SDA at any
time you were working at a McDonald’s store during
the period 11 August 2016 to 17 November 2023,
unless you:
i.
joined the Retail and Fast Food Workers’ Union; or
ii.
have by
5 December 2023
registered with Shine
to be part of the class action.
If you are not sure whether you are a group member,
contact the
independent solicitor (appointed by the Court)
on the details above
before
making your decision.
What do the
cases seek?
The class action and the SDA Actions both seek:
1.
findings that McDonald’s and relevant franchisees breached their legal obligations; and
2.
money compensation.
The cases also ask the Court to order that McDonald’s and the franchisees pay penalties. Penalties are like a fine.
The penalty claims are being dealt with in the SDA Actions.
The Court might order that a share of the penalties are paid to you. Whether you are in the class action or the SDA Actions,
any share of the penalties that you get will be the same.
Who is being sued?
McDonald’s and one franchisee, but this might change after
the initial trial.
McDonald’s and some of its franchisees.
Is the claim
being defended?
Yes, all the claims are being defended.
In the SDA Actions, an additional defence has been raised that alleges that the SDA effectively agreed with the
franchisees’ approach and should not now be allowed to claim compensation for a practice with which the SDA agreed.
If that defence succeeds, the SDA might not be able to recover compensation on your behalf. This issue does not apply to
the Class Action.
Who will any
compensation go to?
If the actions recover compensation (from a judgment or a settlement) then it will be paid to the affected workers. However,
in the class action, some of your compensation would be used to pay legal costs and a funding commission.
How much do
I have to pay?
There are no out-of-pocket or up-front costs in the
class action.
If the class action is unsuccessful, you won’t have to
pay anything.
If you receive compensation, then the Court is likely to
order that
some
of the money be deducted and used
to pay a share of the legal costs and the litigation
funder’s commission.
You can assume that commission rate will be about 18% of
the total sum payable to group members. The Court will
decide the final percentage and what legal costs
are reasonable.
You will not pay anything in the SDA Actions.
The SDA is paying all the costs of the SDA Actions,
whether they are successful or not.
You will not be asked to give up a share of your
compensation to fund legal fees or a litigation
funding commission.
What happens
in the event of a
pre-trial settlement?
The settlement needs to be approved by the Court,
including the legal costs and deductions.
The settlement does not need to be approved by the Court,
but the SDA will inform the court of the terms
of any settlement and how the settlement funds will
be distributed.
What happens
if only one claim
succeeds?
If the claims against McDonald’s do not succeed but the
claims against the franchisees do, the class action may seek
to continue against the franchisees alone.
If the claims against McDonald’s do not succeed but the
claims against the franchisees do, the SDA Actions will
continue against the franchisees.
What period of time
is covered?
•
McDonald’s stores - 7 December 2015 to 27 May 2022
•
Franchise stores - 28 May 2016 to 27 May 2022
11 August 2016 – 10 August 2022.
Differences between the class action and the SDA actions
