Posted by Elizabeth Gore-Jones
on 18 July 2023
You will recall that the Vulnerable Workers Legislation was introduced in 2017 to pass on the liability for employee underpayments to Franchisors.
If a Franchisor was aware, or should have been aware, that a Franchisee had not paid its employees correctly then the Franchisor could be liable.
The Fair Work Ombudsman (FWO) is prosecuting Bakers Delight. This is only the 2nd instance of reliance on this legislation.
In this case:
- the Franchisor audited the Franchisee in February 2019
- the audit identified underpayments and non-compliance
- the Franchisor required the Franchisee to take measures
- the Franchisee refused
- The Franchisor took no further action
The FWO is claiming the Franchisor reasonably knew or should have known that the Franchisee would continue its non-compliance after the audit took place.
Bakers Delight could be penalised up to $66,660 for each contravention.
Author:Elizabeth Gore-JonesAbout: Elizabeth specialises in franchising law. She lectures at Bond University PLA in franchising, she sits on the Queensland Law Society Franchising Committee, she is a past member of the Women in Franchising committee and a past member of the Franchise Council of Australia.
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