Legal action against franchisor: how to protect your franchise business

For the first time, the Fair Work Ombudsman is taking legal action against a franchisor (in the hospitality and restaurant industry) for failing to ensure compliance by its franchisees. The franchisor is accused of being responsible for the non-compliance of eight franchise-operated outlets and the underpayment of 9 workers, amounting to a total of $32,321.

What is causing underpayments of employees’ wages?

Australia has 120 Modern Awards, plus many enterprise bargaining agreements in place, to ensure employees are paid fairly for their work. Within these awards and agreements there are many provisions relating to different penalty rates and entitlements employers must provide to their employees. When these provisions aren’t met, employees can be underpaid their correct wages.

What is a whistleblower policy and do I need one?

whistleblower policy

Whistleblowing has become an important consideration for not only large businesses, but businesses of all sizes. Whistleblower laws were brought in under the Corporations Act 2001­ (and other laws) and created a legal obligation for many larger businesses to have a whistleblower policy. However, the benefits of utilising a whistleblower policy, as a means to receive any concerns or complaints, goes much beyond merely complying with the law.

$3 million Fine for Industrial Manslaughter

Industrial manslaughter is a criminal offense that occurs when a person or a company causes the death of an employee or a member of the public due to negligent conduct. In Australia, the issue of industrial manslaughter has been a topic of concern for many years, with a number of high-profile cases highlighting the need for stronger laws to hold employers accountable for workplace deaths.

Paid Family and Domestic Violence Leave inserted into the Fair Work Act

The Federal Government has introduced paid family and domestic violence (FDV) leave into the Fair Work Act. The Fair Work Amendment (Paid Family and Domestic Violence Leave) Act 2022 provides 10 days of paid  FDV leave to full-time, part-time and casual employees from 1 February 2023, and from 1 August 2023 for small businesses (defined as a business with less than 15 employees).

What has changed under the ‘Secure Jobs, Better Pay’ industrial relations reforms?

The Federal Labor Government has introduced their industrial relations reforms through their Secure Jobs, Better Pay Bill which has now been passed and is also known as the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022. In this legislation there are a number of key changes that businesses will have to adapt to, now that it has been passed. These changes impact various diverse areas, from enterprise bargaining to sexual harassment prevention. Note: This is updated as of 22/02/2023.

Why payroll compliance needs to be a top priority for all businesses

Payroll compliance was thrown into the spotlight a number of years ago, when it was uncovered that many well-known Australian brands had underpaid their staff by millions. Since then, there has been a steady flow of organisations from various industries who have been found to have underpaid their employees. The Fair Work Ombudsman (FWO) responded by increasing their use of detection and enforcement measures and targeting areas that were shown to have higher levels of non-compliance.