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New bill to stop all fraudulent franchises

Modern Awards, UnderpaymentsSeptember 18, 2015

New bill to stop all fraudulent franchises (Last Updated On: August 9, 2016)

A new bill could be passed in the wake of 7-Eleven’s slushy mess of underpayments and exploitation of staff. The bill is being put forward by Greens MP and industrial relations spokesman Adam Bandt. It will be introduced to parliament in October and aims to provide the opportunity for employees of ALL Australian franchises to raise employment issues with their head office instead of their immediate employer or owner of the franchise.

Employers and owners of franchises do not have the best employment relations reputation, so it was only a matter of time before something had to change. This bill could bring many existing employment relations issues to the surface and decrease the level of power employers and franchise owners have over their employment relations. By demoting the middle man, or in this case employers and franchise owners, it will give the employee more power and it is likely that more claims will be heard from employees if the bill is passed.

The ever changing landscape of employment laws and regulations in Australia means the employers and business owners need to be mindful to ensure they are compliant. Employsure, amidst the possibility of this bill being passed, can support employers to make sure they are covered.

The Fair Work Act protects employees from underpayments and exploitation, and an employer who is found to have breached the Fair Work Act inclusive of National Employment Standards and Modern Awards results in penalties of up to $54,000 per Course of Conduct.

Further fines can be incurred to businesses or employing individuals who are found to have been aware of these breaches. 7-Eleven’s head office is currently being investigated and if found guilty will be involved in a very costly legal battle. It was revealed that 69%, which is equivalent of 225 stores, had payroll compliance issues.

Franchise owners or employers who are unsure if they are currently meeting their obligations under the Fair Work Act should seek support to ensure that they are correctly paying their staff under the National Employment standards and the correct industry Modern Award.

If you would like to review your business’s current employment relations, contact Employsure on 1300 651 415. Employsure can review your current processes and implement the correct policies and procedures to ensure you are compliant. Employsure keeps your workplace fair and safe and having the correct procedures in place now could protect you in the long run should this bill be passed.

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