A major franchisor like Domino’s could be liable for franchisees’ violations
Domino’s Pizza has been slapped with 17 formal warnings from the Fair Work Ombudsman (FWO) after the agency found 19 out of 23 stores were in violation of Australian workplace laws.
The franchisees in question had reportedly failed to pay staff entitlements, such as wages, delivery allowances, and leave credits, the FWO audit showed.
Domino’s had earlier performed its own audit and worked to rectify the underpayments, but the FWO warned subsequent violations would merit heftier fines.
“While Domino’s have made some improvements to their processes, they should be closely monitoring their stores to ensure employees are being paid correctly,” said Fair Work Ombudsman Sandra Parker.
The FWO also found the majority of Domino’s store owners came from non-English speaking backgrounds and were not fully aware of workplace regulations in Australia.
The agency said major franchisors like Domino’s could be held accountable for violations of their franchisees, and that businesses should not have to rely on the FWO to identify “systemic issues” within their networks.
Parker urged Domino’s to “set clear expectations with their stores, provide them with comprehensive training and support, and regularly check that workplace laws are complied with”.
The FWO will continue to support the efforts of Domino’s “by responding to requests for assistance and assessing any intelligence we receive,” said Parker.
Nick Knight, CEO of Domino’s Australia, said the company has been working closely with the FWO. He vowed to “educate franchisees to ensure they’re doing right 100% of the time”.
