In
light of the recent 7-Eleven scandal surrounding the exploitation and
underpayment of its workers, the Chairman and Chief Executive Office of
7-Eleven have announced their resignations.
The
lesson to be learned by all employers, regardless of the size, scope or
structure of their business, is that there are significant financial and
non-financial consequences for employers who breach their obligations to employees.
Regardless
of their visa or residency status, employees in Australia are entitled to basic
rights, such as payment of minimum wages. The minimum wage and working
conditions for an employee will depend on their age, position, experience and
the area of work in which they practice.
The
minimum wage for employees can be found in an applicable modern award,
enterprise bargaining agreement or employment contract.
An
investigation into the 651 separate 7-Eleven franchises across Australia has
found that franchisees were paying their workers, many of whom were on
temporary working visas, half the minimum wage.
When
an employer breaches their obligations under the relevant instrument, be it an
award, agreement or employment contract, its past and present employees have
several avenues available to them in order to recover lost wages, including;
- Lodging a dispute application to the Fair Work Commission;
- Filing a Workplace Dispute application with the Fair Work Ombudsman; and
- Taking legal action in either a State or Federal court with jurisdiction.
Such
processes are often highly stressful, lengthy and expensive for employers to
defend and employers risk significant penalties for breaching their
obligations.
It
is not only international workers that are vulnerable to exploitation, with the
Fair Work Ombudsman receiving almost 600,000 enquiries per year, more than
150,000 of which are complaints regarding underpayments.
If
you have received a complaint from an employee in relation to an underpayment,
act quickly and repay any monies owed before the matter is escalated to the
next level.
Nevett
Ford lawyers are specialised in all areas of workplace relations and can advise
you on your obligations in relation to payment of entitlements, as well as
defending any underpayment complaints and actions.
