From its assessment of a month’s payment of wages at each store, the FWO recovered $1,978.77 in back pay for 20 workers. Averaging $99 per worker per month, the underpayments ranged from between $118.25 at one site to $792.70. The underpayments were a result of these Domino’s stores underpaying overtime and minimum shift engagements as well as not paying for hours worked, delivery allowance, annual leave loading and personal leave entitlements.
If the FWO was to extrapolate the results from this sample over a longer period and across the whole of the Domino’s network, it is likely that total underpayments of Domino’s employees are both significant and widespread.
The entitlements for these underpaid employees were derived from various Enterprise Agreements, all of which had passed their nominal expiry dates, but were still lawfully operational at the time of the Activity. Domino’s also had a number of informal agreements or memoranda of understanding with the Shop, Distributive and Allied Employees’ Association, agreeing to wage rates and delivery allowances to drivers that were more generous than the expired Enterprise Agreements. These informal agreements are not enforceable under the FW Act.
In response to the types of non-compliance identified, the FWO issued:
- Four Compliance Notices to four franchisees relating to underpayment of minimum shift engagement and overtime, as well as non-payment for hours worked, delivery allowance and annual leave loading.
- 17 Formal Cautions for a range of breaches including record keeping, underpayment of minimum shift engagement and overtime, non-payment for hours worked, delivery allowance, annual leave loading, personal leave entitlements, and unauthorised deductions.
Of those finalised investigations that identified non-compliance, all the stores identified have since complied with the FWO’s enforcement actions and rectified the underpayments to affected employees.
Fair Work Inspectors also provided education to stores about where to access resources and advice that would ensure they could understand and pay correct wages, as well as make and maintain records, issue payslips and meet all their legal obligations.