The Fair Work Ombudsman has recovered $731,648 for 780 workers after an investigation into franchise operations.
The employees worked for companies including Chatime, GongCha, Hot Star Chicken, PappaRich, Sushi Izu, Nene Chicken and The Sushi 79.
Franchises were selected based on a number of factors including anonymous tip-offs, requests for assistance and stakeholder referrals.
The Ombudsman found more than 50 per cent of the businesses underpaid staff, with pay slip obligations, penalty rates, record-keeping and other minimum hourly rates of pay the most common workplace breaches.
Inspectors issued 38 contravention letters, 13 infringement notices (totalling $8,780 in penalties for pay slip and record-keeping breaches), eight compliance notices (requiring back-payment of $61,745 for 68 employees) and 26 formal cautions.
The operator of three PappaRich outlets, a former Chatime franchisee, a company and two of its directors operating two The Sushi 79 stores in Brisbane and the Chatime Australia franchisor Infinite Plus will all see the Fair Work Ombudsman in court due to the serious nature of their breaches.
Recoveries of underpayments have occurred from 40 businesses, with more recoveries currently before the court.
Fair Work Ombudsman Sandra Parker says franchise operators should pay attention. “Inspectors have recently commenced a second phase of investigations into emerging franchises,” says Parker.
“We urge franchisees to contact us if they need any assistance with their lawful obligations to their employees before we come knocking on their door.”
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