ARTICLE · 10 MARCH 2017

Pizza Hut pinged for employee underpayments

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A recent FWO investigation into fast food giant Pizza Hut has identified widespread non-compliance with the FWA 2009.

AustraliaEmployment and HR

A recent Fair Work Ombudsman (FWO) investigation into fast food giant Pizza Hut has identified widespread non-compliance with the Fair Work Act 2009 (Cth).

What you need to know:

Following its audit, the FWO found that of the 32 Pizza Hut franchisees (Franchisees) audited, at least 24 were non-compliant.
Pizza Hut, whilst not involved in the actual non-compliance of its Franchisees, did not put adequate preventative measures in place.
There are a range of strategies that franchisors can utilise to prevent non-compliance on behalf of franchisees and/or limit liability in the event that non-compliance occurs.

BACKGROUND

The FWO has estimated that Pizza Hut employees are owed over $12,000 in underpayments resulting from Franchisees misclassifying employees and/or incorrectly applying modern award rates and/or failing to increase pay rates in line with the Fair Work Commission's annual minimum wage decisions.

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