The Reject Shop – Underpayment Investigation
Adero Law is currently undertaking due diligence investigations into ‘The Reject Shop’ for purported underpayments to staff. The Reject Shop operates over 356 locations across Australia.
About the Class Action:
On 18 April 2023, Adero Law commenced a class action against The Reject Shop Limited, alleging that it underpaid salaried Store Managers and Assistant Store Managers over a prolonged period. The Class Action also makes claims of unreasonable overtime worked by employees.
The Applicant alleges that The Reject Shop engaged in systemic practices which included paying a fixed salary that did not properly capture hours worked beyond ordinary rostered shifts and otherwise failing to have checks in place to determine which industrial agreement applied to Group Members and their applicable entitlements.
- Paying a fixed salary that did not properly capture hours worked beyond ordinary rostered shifts;
- Requiring pre-shift and post-shift work without compensation;
- Denying or discouraging proper breaks (meal, rest) or requiring work during break periods; and
- Other practices resulted in effective underpayment of lawful entitlements.
These practices are alleged to have affected both full-time and part-time salaried managers nationally.
Adero now has over 250 registered Group Members who worked for The Reject Shop between 2017 and 2025 and estimates that the Company owes Group Members significant amounts in respect of underpayments, interest and penalties.
Who Can Participate in this Class Action?
Registrations are still open.
You may be eligible to be a Group Member of this class action if you:
- Were employed by The Reject Shop (non-casual) in a Salaried Manager or Assistant Manager role;
- Worked more than 40 hours in any one week for full-time, or more than two hours beyond ordinary hours for part-time; and
- Were employed by The Reject Shop at any time during the relevant period between 24 April 2017 to 15 August 2025.
If you satisfy these criteria, whether you are a current or former employee, you should register your interest to participate.
Frequently Asked Questions
Adero Law is currently in the process of undertaking necessary due diligence investigations required to understand the viability of a potential class action.
At this stage, Adero Law asks you to register your interest should you be interested in participating in a potential class action.
Once a class action has commenced, Adero Law may send you a retainer for a no win no fee legal service. You are under no obligations until you agree to be bound by such a document.
Although circumstances may vary, the general structure of a class action proceeding run by Adero Law is as follows:
- A wrongdoing occurs that affects a group of people (claimants) in a similar way.
- Adero Law’s Claim Origination team investigate the wrongdoing by conducting due diligence investigations and liaising with a lead claimant.
- Pleadings and other Court documents are finalised and filed with the Court.
- Claimants have a chance to opt-out of the class action.
- Evidence is compiled and the claim is prepared for trial.
- If appropriate, mediation or settlement discussions take place between the parties.
- If a settlement agreement is not reached, the claim proceeds to trial.
- Once a settlement agreement has been reached, claimants are notified, and a is timetable put in place for any objections or submissions to be made ahead of a hearing.
- A settlement hearing occurs.
- If the settlement is approved, a distribution scheme will be implemented as approved by the Court.
Once a class action has commenced, Adero Law may send you a retainer for a no win no fee legal service that is relevant to your individual claim. This document will contain any terms relevant to the payment of legal fees under a no win no fee contract, and in respect to the ongoing management of the class action.
Adero is accepting registrations of interest from individuals that have worked in a The Reject Shop operated store at any time since 2016. You can join if you are currently employed or not currently employed by The Reject Shop as long as you worked in such a The Reject Shop store post September 2016.
No. The Fair Work Act 2009 (Cth) s 340 prevents employers from treating you differently for exercising your workplace rights. It is unlawful to punish an employee in any way for joining a class action. If you believe this has happened to you, contact us at Adero Law and we will promptly investigate such a complaint.
Adero will not provide your details to The Reject Shop Limited or any third party without your consent. Adero adheres to Australian privacy principles and will store its data in its systems and will not use that material for any unrelated purpose or disclose it to any third-party. That information we procure is also subject to legal professional rules that Adero Law adheres to, under the relevant ACT rules.