NSW Health settles massive underpayment suit

NSW Health has settled a class action brought by junior doctors who argued they were underpaid for overtime and breaks between 2014 and 2020. Around 20,000 class action participants will be eligible for a share of the $230 million settlement, provided it is approved by the Supreme Court of NSW later this year.

In addition to the financial settlement, the case has already prompted policy reforms to ensure better workplace and employment conditions for doctors employed by NSW Health. 

Having earning potential unfairly curtailed can be significantly detrimental to the ability of a young doctor to establish a solid financial plan. 

Katharine Fasal of Specialist Wealth, whose income and investment management clients include a large number junior medical officers (JMOs), cautiously welcomed the announcement; “there has been a lot of uncertainty around this case and the issue of JMO income generally”.

“Instability breeds instability when it comes to financial planning. If you don’t know whether you’re going to be paid for the hours you work or for normal break entitlements, it’s impossible to predict income accurately.”

“The same can be said for the unknowns of ongoing legal action. A protracted legal battle likely wouldn’t have benefitted anyone anyway, especially if the final result was similar to what has been announced today,” she explained. 

“Now these young doctors - some of whom are no longer young doctors and now have well-established careers in NSW and elsewhere - can get on with the business of treating patients and saving lives. I think everyone can agree that’s a positive outcome,” she concluded.