Junior Doctors Secure $174 Million Settlement Over Unpaid Overtime

A major victory for wage justice and accountability has been achieved, with the Federal Court approving a $174 million settlement between the Victorian Government and more than 12,800 junior doctors who were systematically denied payment for overtime hours worked.

This landmark decision highlights the continuing issue of unpaid labour in Australia’s public health system and reaffirms the critical role of collective advocacy in holding employers to account.

The settlement resolves thirty separate class actions brought by the Australian Salaried Medical Officers’ Federation (ASMOF) on behalf of junior doctors across Victoria. The doctors alleged that they were routinely directed to work additional hours without pay while performing essential duties such as ward rounds, handovers, and preparing for medical procedures.

Junior Doctors Secure $174 Million Settlement Over Unpaid Overtime

Under the approved terms:

• $135 million will be distributed among affected doctors, averaging approximately $11,700 each

• $20.8 million will cover legal fees for the applicants

• $17.5 million will be allocated to the administration and distribution of payments

• $430,000 will reimburse the lead applicants, including $175,000 for ASMOF

Justice John Snaden approved the agreement “on the papers,” concluding that the settlement was fair, reasonable, and in the interests of all group members.

Recognition of Industrial Advocacy

For the first time in Australia, a professional association such as ASMOF has been awarded a reimbursement payment for its representative role in legal proceedings. Justice Snaden stated there was “no reason to treat ASMOF any differently from a corporate entity” that brings a representative proceeding on behalf of its members and others.

This recognition of an industrial association’s contribution represents a pivotal step in strengthening collective representation and acknowledges the public benefit derived from advocacy organisations pursuing justice for underpaid workers.

The Bolton Precedent

This settlement follows an earlier decision in Australian Salaried Medical Officers’ Federation v Peninsula Health, where trainee doctor Dr Gaby Bolton successfully claimed compensation for unpaid overtime between 2019 and 2021.

In that case, Justice Mordy Bromberg condemned Peninsula Health’s conduct as demonstrating a “highly irresponsible attitude” toward its legal obligations, ordering the organisation to pay a $316,260 penalty to ASMOF’s Victorian branch. Dr Bolton will now receive a $75,000 reimbursement for her leadership role in the class action, in addition to her earlier compensation.

The Avoided Burden of Continued Litigation

Justice Snaden noted that, without this settlement, up to twenty-nine separate cases would likely have proceeded to trial, requiring complex individual assessments of working conditions, authorisations for overtime, and contractual obligations across multiple health services.

He emphasised that the “cost and time involved in such an undertaking cannot be overstated,” acknowledging that the settlement provides timely and equitable redress without burdening the courts or prolonging hardship for affected workers.

Broader Implications for Wage Justice

This result follows similar actions across Australia, with New South Wales Health settling for $230 million and the ACT Government agreeing to $31.5 million in comparable unpaid overtime disputes.

The cumulative effect of these cases underscores a growing recognition that systemic underpayment within public institutions cannot be ignored or excused under claims of budgetary restraint or administrative oversight.

The message to employers is clear: wage theft, regardless of its form or scale, will attract significant financial and reputational consequences.

1800ADVOCATES’ Perspective

This case exemplifies the importance of standing up collectively against systemic exploitation. For years, junior doctors have endured long hours under immense pressure, with limited avenues for recourse. Their courage in pursuing justice through the courts demonstrates the strength of solidarity and the necessity of industrial advocacy.

1800ADVOCATES supports workers across all industries who face similar challenges—whether through unpaid overtime, forced resignations, or adverse action following the exercise of workplace rights. As this case shows, accountability is possible when workers unite and demand fairness.

While the Victorian Government did not admit liability, the magnitude of the settlement speaks volumes. It stands as a reminder that every hour worked deserves to be paid, and every worker deserves respect for their contribution.

For information about workplace rights or support in addressing underpayment or adverse action, contact 1800ADVOCATES or visit 1800advocates.au.