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The Retail and Fast Food Workers Union (RAFFWU) is pursuing an investigation into an alleged denial of break entitlements in McDonald's stores across Australia since September 2014.
According to the union, there were at least 250,000 current and former employees of McDonald's that were denied 10-minute rest breaks they are legally entitled to.
It is also launching a campaign for employees to come forward to join a potential class action.
According to Josh Cullinan, secretary of RAFFWU, the break entitlements clause is very clear, and there is no basis for arguing that these were denied by accident.
Cullinan said the average worker could expect about $1000 in a class action.
He added that the union hopes that the class action investigation will persuade thousands more to come forward.
Vicky Antzoulatos of Shine Lawyers, which is representing the union, said there is a basis to say that the breaches were systematically done across the McDonald's network in Australia, both in stores owned by head office and in franchises.
James Rickards, the director of corporate relations for McDonald's Australia, said the company works closely with its restaurants to ensure employees receive all the workplace entitlements and pay.
