Collins Foods has entered a binding Heads of Agreement to settle a class action regarding 10-minute rest breaks for up to $9 million.
The legal proceedings, which commenced in December 2023, involved claims from employees against the company and several other respondents regarding workplace entitlements.
The settlement is to be recorded in a formal Settlement Deed and remains subject to final approval by the Federal Court of Australia.
The financial structure includes a cap and collar mechanism, meaning the final amount may be reduced if fewer group members register or increased if participation exceeds expectations.
In agreeing to the resolution, the company stated that it makes no admission of liability and that the specific terms of the agreement remain otherwise confidential.
The company recently provided a trading update on March 11, detailing its European development strategy and expansion plans for its KFC and Taco Bell franchises.
Collins Foods serves as a major franchisee in Australia and Europe, and it reiterated its ongoing commitment to supporting team members and complying with all applicable workplace laws.
At the time of reporting, Collins Foods' share price was $9.88.