Young’s List barristers Chris McDermott and Natalie Campbell acted for the Fair Work Ombudsman in a landmark Federal Court ruling.
In Fair Work Ombudsman v Woolworths Group Limited; Fair Work Ombudsman v Coles Supermarkets Australia Pty Ltd; Baker v Woolworths Group Limited; Pabalan v Coles Supermarkets Australia Pty Ltd [2025] FCA 1092 (Perram J), the Court held contractual set-off can only discharge Award entitlements within the same pay period—not by pooling over-award amounts across months—and flagged record-keeping shortcomings.
Background & immediate implications: The proceedings (with parallel class actions) arose from salaried-manager underpayments tied to annualised salary arrangements. Following the ruling, employers should urgently reassess set-off clauses, remediation programs and payroll records; the FWO has already signalled updates to its public guidance.
A consequential, high-impact ruling with immediate payroll implications. Chris McDermott appeared for the FWO in the Woolworths proceeding; Natalie Campbell appeared for the FWO in the Coles proceeding.