Franchisors beware the Fair Work Acts new teeth

Following the furore over rampant employee underpayments and exploitation in 7-Eleven, Caltex and Domino's franchises, the government's plan to tackle the issue by giving more teeth to the Fair Work Act has taken a step forward with the Senate passing the "Vulnerable Workers" legislation.

After Labor squeezed in a few last minute amendments, it's a done deal and will be law soon. Here's what you need to know.

Serious fines for "serious contraventions"

The Bill creates a new "serious contravention" category of offence that attracts penalties 10 times higher than those currently available under the Fair Work Act. If a contravention is deliberate and systematic the offending corporation can be fined up to $630,000 and individuals involved in the contravention up to $126,000.