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ARTICLE · 06 DECEMBER 2015

Promoting fair work practices in franchisees

Corrs Chambers Westgarth
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Franchisors can play an important part in creating a culture of payroll compliance in their franchisees.

AustraliaCorporate/Commercial Law
Jim Micallef
Jim Micallef
Sophie Morton
Sophie Morton
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Since the new Franchising Code of Conduct came into effect earlier this year, there has been an increased focus on franchise issues. This article explores one important issue in this regard – the role of franchisors in promoting fair work practices in their franchisees.

Franchisors can play an important part in creating a culture of payroll compliance in their franchisees. They can also provide valuable support to assist franchisees meet their obligations at law and under their franchise agreements.

Why should franchisors take such steps? Recent cases have shown us that even though franchise employees are employed by franchisees and not franchisors, franchisors are not immune from claims, negative publicity and political scrutiny that may arise as a result of unfair work practices perpetuated in franchises. It is certainly in franchisors' interests to avoid these sorts of outcomes.

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