Woolworths has settled a legal dispute with workers seeking about $300 million in underpayments.

About 6,000 current and former Woolworths workers began a class action in 2019 after store managers complained they were earning less than their staff.

Woolworths on Friday did not give the settlement cost but said the agreement ensures the class action will stop.

The company has been repaying affected staff.

Unrelated to the class action, the retail giant will pay about $50 million to 20,000 current and former workers to rectify underpayments discovered in the same year.

The underpayments date back to 2013 and relate to the General Retail Industry Award payment scheme.

The current and former workers will each receive $2,500 and superannuation.

These people must have worked for at least six months between January 1, 2010, and September 1, 2013.

Shares on the ASX were up 1.11 per cent to $40.14 at 1211 AEDT.

AAP

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