Australia’s two biggest supermarket chains may have to fork out more than $1 billion in repayments and other costs between them after a court ruled they underpaid thousands of salaried managers for years.

Friday’s Federal Court ruling would also require “significant and widespread changes” to accepted retail practice for both Woolworths Group and Australian businesses, large and small, the company said on Monday.

Justice Nye Perram on Friday ruled Woolworths and Coles did not comply with their obligation to keep accurate employment records and paid workers their salaries without tracking other entitlements owed under the retail award.

Woolworths estimates that based on the judgement it will have to pay another $250 million to $470 million to salaried store leaders, with interest, su

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