$229.8M Settlement approved in NSW Junior Doctors underpayment class action

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This class action was brought on behalf of a large number of junior medical doctors (JMD), working in the NSW public system. The proceedings claimed that the JMD’s had been underpaid in relation to issues such as overtime and meal breaks.

The defendants argued, in essence that under the correct interpretation of each of the relevant Industrial Awards, the JMD’s had been properly remunerated. They also relied on a policy directive issued by the Ministry of Health, which required prior approval of un-rostered overtime.

The proceeding settled at mediation in March 2024 for $229.8 million (inclusive of legal and other costs). In this judgment, Garling J approved that settlement as fair and reasonable, taking into account the interests of all group members. His Honour noted that the sum to be paid was significant and the resolution of all the claims would likely have been ‘extremely time consuming, expensive and procedurally difficult’.  He also found that the deduction for legal costs and expenses was fair and reasonable, as was the cost of settlement administration.

Fakhouri v The Secretary for the NSW Ministry of Health (No.2) [2024] NSWSC 1171

Supreme Court of New South Wales, Garling J
Applicant’s Solicitors: Maurice Blackburn
Respondent’s Solicitors: Minter Ellison 

Austii link

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