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CoreStaff settles on-hire workers' underpayment claims for $6.4m

CoreStaff is paying $6.4 million to settle a class action launched by on-hire workers, but they'll only receive 41% of it.

The case involves an on-hire labour agreement with the Commonwealth Government, under which CoreStaff NT sponsored and employed skilled workers from Papua New Guinea to work in Australia.

In late 2018 one of the workers launched Federal Court proceedings alleging that CoreStaff made misleading or deceptive representations about his employment and breached his contract by underpaying him. Subsequently, 20 other workers launched similar claims on behalf of themselves and others.

The Federal Court ordered that all the claims be heard together and ultimately set the matter down for a seven-day trial, however in November 2021, after a second mediation, the parties reached a settlement...