Junior medical doctors (JMDs) employed in the NSW public health system have secured a significant $229.8 million settlement in a class action addressing claims of widespread underpayment. The settlement, inclusive of legal and administrative costs, was approved by the Supreme Court of New South Wales on 20 September 2024, with Justice Garling declaring the agreement fair and reasonable for all group members involved.
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This marks a major milestone for JMDs who alleged they were underpaid for overtime work and missed meal breaks, highlighting long-standing systemic issues within the healthcare sector.
The Case Against the NSW Ministry of Health
The class action, led by Maurice Blackburn, was brought on behalf of JMDs working across NSW’s public hospitals. Key issues raised in the proceedings included:
- Unpaid Overtime: Doctors claimed they regularly worked hours beyond their rostered shifts without receiving proper compensation.
- Meal Breaks: Allegations were made that JMDs were not adequately compensated for missed breaks, as required under industrial agreements.
The NSW Ministry of Health denied the claims, arguing:
- That JMDs had been properly remunerated under the relevant Industrial Awards.
- A policy directive requiring prior approval for unrostered overtime supported their case.
Despite these defenses, the matter was settled at mediation in March 2024, avoiding what Justice Garling described as a potentially long, complex, and expensive legal battle.
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Details of the Settlement
Settlement Amount
The total settlement sum of $229.8 million includes:
- Compensation for affected JMDs.
- Legal Costs incurred during the litigation process.
- Administrative Costs associated with distributing the settlement.
Court Approval
Justice Garling approved the settlement in Fakhouri v The Secretary for the NSW Ministry of Health (No.2) [2024] NSWSC 1171, noting:
- The significant financial sum achieved on behalf of JMDs.
- The settlement avoided the procedural and financial challenges of continuing litigation.
- The legal costs deducted from the settlement were deemed fair and reasonable, ensuring group members receive appropriate compensation.
Why This Settlement Matters
Acknowledgment of Underpayment
This settlement represents a critical acknowledgment of the systemic challenges faced by junior doctors working long hours in demanding conditions. The claims highlighted how policies and industrial frameworks may fail to reflect the realities of modern healthcare practices.
A Step Toward Fairer Work Conditions
While the settlement does not admit liability, it sends a strong signal to employers across the healthcare sector about the importance of properly compensating employees for their time and effort.
Next Steps for Group Members
Who Is Eligible?
The settlement applies to JMDs who were part of the class action group, represented by Maurice Blackburn. If you were eligible to participate, you will be contacted regarding your share of the settlement.
Distribution of Funds
The compensation amount for each JMD will depend on:
- The number of eligible claims.
- The individual circumstances of each group member, such as the extent of unpaid overtime or missed meal breaks.
Timeline
The settlement administration process, including the calculation and distribution of payments, will take time to ensure fairness and accuracy. Group members will be updated regularly throughout the process.
What Does This Mean for the Healthcare Sector?
Precedent for Accountability
This class action sets a powerful precedent for accountability in healthcare employment practices. It emphasizes the importance of upholding industrial agreements and ensuring fair compensation for medical professionals.
A Call for Systemic Reform
Beyond compensation, the case highlights the need for broader systemic reforms to address:
- Overworked healthcare staff.
- Improved enforcement of award entitlements.
- Transparent policies around overtime approval and payment.
Final Thoughts
The $229.8 million settlement in the NSW junior doctors’ class action is a landmark outcome, not only for the affected medical professionals but also for the healthcare system as a whole. It underscores the importance of fair and lawful employment practices in one of the most vital and demanding professions.
Junior doctors across NSW can now move forward, knowing their collective efforts have resulted in a significant acknowledgment of their dedication and rights.
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