TORONTO — Flight Centre Travel Group Inc. has reached a $7-million settlement in a proposed class action lawsuit against it by its Canadian travel agents.
The case began in February 2019, when a plaintiff claimed the Australian company's Canadian wing failed to properly compensate its agents for overtime, breaching provincial employment standards.
Flight Centre Canada has denied these claims and no ruling was made on them.
Under the settlement, the $7-million payout will include legal fees, administrative expenses and an honorarium for each class member based on their province and length of employment.
Flight Centre will also implement a new timekeeping system for logging and tracking overtime hours.
The deal, reached after mediation, is subject to court approval.
"As anyone who has worked in the travel industry knows, the work of travel consultants is hard, and often involves putting in long hours to meet the needs of their clients," plaintiff Stephen Aps said in a statement. "I am proud of this settlement and what it achieves for Flight Centre's travel consultants."
"We are pleased to be able to put this litigation behind us as we respond to the challenges facing the travel industry caused by COVID-19 and prepare to welcome our clients back to travel," said Flight Centre Canada president John Beauvais.
Travel agents who were members of the class action number "in the thousands," said Joshua Mandryk, the plaintiff's lawyer.
This report by The Canadian Press was first published Aug. 24, 2020
The Canadian Press