The results of the Activity revealed high levels of non-compliance across the 23 finalised investigations, with only four of those 23 stores compliant with the FW Act and applicable Enterprise Agreements.
Spectrum of non-compliance
The FWO has so far identified cases of non-compliance at 19 stores, including underpayment of overtime and minimum shift engagement, and non-payment for hours worked, delivery allowance, annual leave loading and personal leave entitlements.
The levels of non-compliance ranged from lower level breaches relating to minor underpayments, and medium level breaches of overtime provisions and record keeping.
Of the finalised investigations, the Activity found that only one of the franchise stores (based in Sydney) was compliant, with the remaining 16 franchise stores found to be non-compliant with one or more of their workplace obligations
For those stores audited that were corporate owned, three of five were found to be non-compliant (two in Brisbane and one in Sydney). The one joint venture store audited was found to be fully compliant.
The types of non-compliance identified
The types of non-compliance identified by the FWO throughout the Activity included:
- record keeping breaches
- underpayment of overtime and minimum shift engagement
- non-payment for hours worked, delivery allowance, annual leave loading and personal leave entitlements and
- unauthorised deductions.
The stores and their employees
A large number of the employees in the stores audited were from cohorts the FWO identifies as vulnerable to exploitation, including young and migrant workers. These groups are typically unaware of their minimum entitlements and are less likely to seek assistance when they do not receive those entitlements.
Of those employees whose date of birth was provided to the FWO, 546 (72%) were under the age of 25 years. A large proportion of employees whose visa data was provided to the FWO (321 employees or 48%) held a visa with work rights.
A contributing factor to the high rates of non-compliance found in the Activity was that 65 per cent of franchisees were from non-English speaking backgrounds and possessed minimal knowledge or experience of Australian workplace laws.
Appendix A contains case studies from the Activity that illustrate the types of non-compliance encountered by the FWO and the steps taken to remedy them.
Domino’s involvement in workplace breaches
The Activity involved a series of comprehensive investigations into both the targeted franchisees and the franchisor. In particular, the Activity sought to establish what Domino’s knew, or should have known, regarding non-compliance in its network.
Following the extensive analysis of documentary and testimonial evidence relating to the finalised investigations, the Activity was unable to determine if Domino’s was knowingly involved (as an accessory) in the breaches committed by its franchisees. With respect to Domino’s as an employer itself, the Activity found three corporate owned stores had breached the conditions of the relevant Enterprise Agreement concerning personal leave entitlements and record keeping.