A Disenfranchised Culture in Franchising

Big Name Fair Work Offenders on the Rise

Earlier this year, the Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017 was introduced into federal parliament to address the wage fraud, exploitation, poor record-keeping violations beleaguering high-profile franchises. Once enacted, franchisors will bear heavier accountability and penalties when franchisees err.

According to Fair Work Ombudsman (FWO) Natalie James, café, restaurant and takeaway food workers make up 11% of FWO disputes despite making up just 5% of the workplace. That’s 1 in every 10 complaints received coming from this sector. TSheets has previously put this into perspective with ‘161,000,000 Reasons to Comply with Fair Work.’

Check out the infographic below to see the top international Fair Work offenders and violations as of July 2017. (On mobile? Click to see it larger.)


Pizza wars: The pie that everyone wants

Australians love pizza so much that it generates an annual revenue of $3.7 billion. Projected to grow to $3.9 billion in 2018-2019, the pizza business currently employs around 14,000 workers, and the competition is fierce, with more than 5,000 businesses vying for a slice.

This has been identified as a contributing factor in the Domino’s fiasco, as some franchisees are not able to meet the cost and profit margins set by the franchisor. Instead, they cut corners with employee wages in hopes of nobbling competitors and appeasing pressure from the top.

To this, Fair Work has a simple answer, as evidenced on their Twitter account in July.


Here’s what franchisors and franchisees need to know

When the FWO conducts an audit of your business, it’s looking for a few key ingredients:

  • Accurate payslips
  • All record-keeping and payroll reporting practises
  • Proper entitlements
  • Hourly rates paid
  • Overtime rates paid
  • Penalties
  • Allowances

Plus, all employee records must be:

  • Readily available
  • Legible and in English
  • Kept for a minimum of seven years

Reputation is everything to both the franchisor and franchisee. Whilst the FWO is taking an increasingly hard line on business owners, it is also offering guidance and support to make sure businesses have everything in order.


Want to keep the right employee timesheet data? TSheets can help!

If you’re thinking it’s time to give Fair Work another look or how you can protect your business and franchise, you’ll want to check out more from our blog.

Can’t Find Your Timesheets? The Fair Work Ombudsman Will See You In Court

4 Ways Employee Timesheets Can Save You Money

9 Secrets of Fair Work Compliance

How To Handle A Fair Work Dispute

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