Australian fast-food chain Guzman y Gomez is facing a class-action lawsuit in the United States, brought by former employees following the recent closure of its American stores. The legal action alleges that staff were terminated without adequate pay or notice, as the Mexican-themed fast-food brand withdraws from the US market.
The lawsuit has been filed in a US federal trial court in Illinois, representing American workers affected by the sudden shuttering of Guzman y Gomez outlets. The core of the claim revolves around accusations that the company failed to meet its obligations regarding employee compensation and notification periods during the closure process.
Guzman y Gomez, which originated in Australia, had been operating in the US as part of its international expansion strategy. However, the decision to pull out of the American market has resulted in the cessation of its US operations, leading to the dismissals that have now sparked this legal challenge.
Such class-action lawsuits are common in the US when a significant number of employees are affected by corporate decisions, particularly those involving mass layoffs or store closures. The outcome of this case could set a precedent for how companies manage their exits from international markets and their responsibilities towards local workforces.
The company has not yet publicly commented on the specifics of the lawsuit. The legal proceedings will now determine whether the allegations of insufficient pay and notice are substantiated under US labour laws.