Regional supermarket workers are set to share in millions of dollars in backpay after their employer reached a settlement with a retail union over underpayments.

The underpayment claims were first brought to the Federal Court in 2021, after staff working for Eudunda Farmers Limited (EFL)-owned Foodland supermarkets in South Australia approached The Shop, Distributive and Allied Employees’ Association (SDA) with their concerns.

Initially 64 current and former EFL employees claimed they had been underpaid or misclassified and were seeking $1 million in back pay.

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The legal action eventually involved more than 500 current and former workers across 23 regional supermarkets, who together with the SDA agreed to the $5.5 million settlement with the Eudunda Farmers owners.

The settlement means each will receive on average $11,0000.

However, the level of entitlements vary, with one worker set to receive more than $145,000 according to the ABC.

EFL operates 23 supermarkets and retail stores in country South Australia and employs more than 700 South Australians, with a majority living in regional areas.

The case related only to EFL-owned Foodland stores. Other Foodland-branded supermarkets across South Australia which are separately owned and operated were not accused of underpayments and were not part of the case.

In Kingston SE, a small regional town 294km from Adelaide, Tahlia Troeth worked at her local Foodland for five years until 2022 and said the money owed in backpay would greatly benefit her.

“This will make a real difference for me and will help me pay off the remainder of my HECS debt,” she said.

“I worked for Eudunda Farmers part-time, mostly as a junior employee. I had no idea the underpayments were this large, I thought it was just a few missed allowances here and there.

“I’m glad that I, and many other workers, are finally getting the money that we deserved in the first place.”

SDA argued EFL misclassified workers, incorrectly paid overtime and allowances, and breached minimum shift rules over a six-year period.

After the settlement was agreed, SDA secretary Josh Peak said he was glad to see justice done for workers.

“The SDA is proud to have secured $5.5 million in backpay and deliver wage justice for workers at Eudunda Farmers supermarkets,” he said in a statement.

“This is one of the largest retail underpayment cases in South Australian history.

“This is a massive outcome for these workers and will be life-changing for many of them.”