Exploitation of vulnerable workers by your franchisee or
subsidiary could see you liable
As any entrepreneur knows, there are legal requirements and
responsibilities that are part of running your own business. But
did you know that as a franchisor or holding company you have
additional responsibilities for ensuring compliance with the
Fair Work Act 2009 (Cth) (FW Act), and
that you could be liable for your subsidiaries' or
franchisees' breaches of the FW Act?
Highly publicised cases of exploitation of vulnerable workers,
including by 7-Eleven and Caltex franchisees, have prompted the
introduction of legislation which requires franchisors and holding
companies to do more to protect vulnerable workers employed in
their business networks.