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ARTICLE · 10 JUNE 2016

Franchisee underpayments and the supply chain

Employee underpayment is an issue with a more-or-less bipartisan commitment to do more to protect vulnerable employees.

AustraliaEmployment and HR

I do not recall worker underpayments ever having been an election issue before, or even rating a policy announcement but this year, under the media spotlight ignited by 7-Eleven, this issue is now very much on the agenda. This is part of a trajectory of heightened enforcement activity and a broader view of who might be liable for pay infringements.

Employers not complying with award minimum wages, or trying to avoid awards by sham contracting, is not a new issue. In the old days, pre-Workchoices in 2006, the Department of Industrial Relations in each state had inspectors to investigate and prosecute underpayments but it was pretty low key, and had not been given a shake up for a long time. With Workchoices and the Fair Work Act, and the shift of responsibility to the Federal Government, came a much higher-profile regulator, in the form of the Fair Work Ombudsman (FWO) which had a more sophisticated approach to enforcement (drawing on the likes of the ACCC), including

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