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ARTICLE · 14 JUNE 2017

Protecting vulnerable workers – New legislation expected soon

This Bill imposes liability on franchisors for the errant behaviour of their franchisees in their employment of staff.

AustraliaEmployment and HR

As foreshadowed in our Client Bulletin in August 2016 ( http://www.codea.com.au/publication/7-elevan-scandal-lessons-employers-individual-managers/), the Fair Work Ombudsman's (FWO) inquiry and report into the 7-Eleven underpayment scandal has resulted in a Bill to significantly amend the Fair Work Act 2009 (Cth), which was presented by the Coalition Government to the House of Representatives on 1 March 2017.

This is one of those rare legislative initiatives in workplace relations law that has attracted widespread support amongst the stakeholders in this area.

This rather uncommon consensus has, without doubt, been enhanced by revelations in recent times that, quite apart from the 7-Eleven organisation, a number of other large retail and food service companies, including Caltex, Yogurberry, Coles and Dominos, have also been involved or complicit in systematic underpayment of some of their most vulnerable workers. And that is not an exhaustive list.

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