Nine Adelaide workers take Chemist Warehouse to court claiming underpayment, misclassification

Chemist Warehouse is facing an underpayment lawsuit as nine SA workers accuse the discount giant of misclassifying their employment that could grow into a $10m liability.

Chemist Warehouse is facing lawsuit for misclassifying and underpaying pharmacy workers which could grow into a $10m liability if the case against the discount giant, which goes to trial later this year, proves successful.

The Shop, Distributive and Allied Employees Association, which represents retail workers, has launched legal action in the SA Employment Tribunal against the owners of Chemist Warehouse stores in Colonnades, Elizabeth City Centre, Modbury and Clovelly Park.

The nine workers claim they were directed by their employers to complete a Certificate III in Community Pharmacy to allow them to complete higher level work duties.

However, a statement of claim lodged by the SDA and seen by The Advertiser, claims that the workers are owed a total of $45,000 after they were not paid in line with their new duties.

The SDA has warned that the lawsuit has the potential to affect 1000 employees across 350 stores in Australia.

The owners of four chemist warehouse stores in Adelaide have been accused of underpaying workers – with the lawsuit having the potential to affect thousands of workers across Australia. Picture: Sarah Marshall

The average amount of money being claimed is $5000 with the union estimating that the amount of underpayment, if the claims are proven, could be $600,000 in SA alone and up to $10m at a national level.

Chemist Warehouse paid for the workers, who were classified as pharmacy assistant level 1 or 2, to complete the extra education.

The SDA claims that after the workers completed the certificate they were completing the work of a pharmacy assistant level 3, but were not being paid accordingly.

Hayley Michellson, a former employee at the Chemist Warehouse Colonnades Shopping Centre store, said her work had changed after completing the certificate.

“I was required by my employer to get a Certificate III in Community Pharmacy and

was required to assist customers in complex work,” she said.

“It’s really frustrating to know that I should have been paid more for the work I was

doing.”

In responses to the statements of claim, lawyers for the business owners deny the claims levelled against them and say the workers had been promoted to level 2 workers.

They also deny that the workers are entitled to any relief from the court.

SDA SA secretary Josh Peak said it was unlawful for a worker to be directed to work above their pay grade.

“We’re alleging that Chemist Warehouse knowingly ripped thousands out of the pockets of its employees by directing them to work above their classification level,” he said.

“This isn’t a mistake or an oversight, it’s another shocking example of wage exploitation by a national brand.

“Chemist Warehouse operates 350 stores across the country and brings in millions

in revenue – they have the capacity to pay their employees properly and abide by

the law.”
The lawsuit is set down for a 10 day trial before the SA Employment Tribunal in August this year.