Adero Law considers launching a class action against OTR for allegedly underpaying staff
Major SA employer OTR is being targeted for a possible class action by an interstate law firm over the alleged underpayment of wages – a claim strongly denied by the company.
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South Australia’s largest private employer, OTR, is being targeted for a possible class action by a Canberra law firm which is investigating whether it underpaid staff.
The allegations have been strongly denied by Peregrine Corporation, the parent company of the petrol station and convenience store chain.
Adero Law, which has 11 class actions either on foot or being considered at the moment, has been advertising on social media and asking employees who believe they may have been underpaid to come forward.
Adero solicitor Kellie Pledger said the potential ‘‘class size” was 6000-8000 people, and 300 had already registered interest in the possible legal action. She said the filing of a case was not imminent, and would occur in the first half of next year if it eventuated.
OTR, formerly On The Run, employs more than 3000 people in SA and operates almost 150 outlets.
Parent company Peregrine Corporation said it was aware of the potential action but had not been contacted by the law firm.
Peregrine denied underpaying any staff members and said it would defend an action if it eventuated.
“Peregrine is committed to ensuring that its employees receive their entitlements. The company is, and always has been, committed to paying its employees correctly,’’ the company said in a statement.
Adero says on its website that it “has been instructed about potential wage underpayments within the On The Run group of companies’’.
It states that “typical patterns of our client’s concerns ... if established” include traineeship programs used as a device to pay employees below minimum rates of pay or being irrelevant to their duties, incorrect Award classifications, and lack of additional payments for working overtime hours.
Peregrine said it did not use traineeships in order to pay staff less.
“Traineeships are used to train employees in the key skills required for the business. Peregrine has a long history of developing its employees to advance their careers,’’ the company said.
Ms Pledger said former staff had reached out to the firm, prompting the investigation. A dollar figure for the potential action was not available at this stage.
“At this stage it is just an investigation,’’ Ms Pledger said.
The statute of limitations for underpayments in Australia is six years counting back from the date of filing.
Ms Pledger said there was “quite a bit of interest” from litigation funders in the possible action.
Last month Adero filed a class action against Woolworths alleging underpayments of as much as $620 million across 7000 staff.