[Australia] 7-Eleven pays employees back $173m

[Australia] 7-Eleven pays employees back $173m
03 Nov 2020

A repayment of $173m has been made to more than 4,000 current and former franchisee employees of 7-Eleven franchises in Australia following an FWO inquiry. The figure is comprised of underpaid wages, interest and superannuation between September 2015 and February 2020. The Fair Work Ombudsman (FWO) reportedly brought eleven litigations against 7-Eleven franchisees, resulting in courts awarding more than $1.8 million in penalties against them. 

The penalties were for breaches including paying unlawful flat rates to workers, operating unlawful cashback schemes and falsifying records. The FWO said 7-Eleven Stores Pty Ltd has made significant improvements to its payroll and time-recording systems, as part of a three-year compliance partnership with the ombudsman. The company voluntarily entered into a Compliance Deed in December 2016 to improve compliance across its franchise network. Australian Payroll Association has further details of the FWO enquiry together with a statement from 7-Eleven.

A repayment of $173m has been made to more than 4,000 current and former franchisee employees of 7-Eleven franchises in Australia following an FWO inquiry. The figure is comprised of underpaid wages, interest and superannuation between September 2015 and February 2020. The Fair Work Ombudsman (FWO) reportedly brought eleven litigations against 7-Eleven franchisees, resulting in courts awarding more than $1.8 million in penalties against them. 

The penalties were for breaches including paying unlawful flat rates to workers, operating unlawful cashback schemes and falsifying records. The FWO said 7-Eleven Stores Pty Ltd has made significant improvements to its payroll and time-recording systems, as part of a three-year compliance partnership with the ombudsman. The company voluntarily entered into a Compliance Deed in December 2016 to improve compliance across its franchise network. Australian Payroll Association has further details of the FWO enquiry together with a statement from 7-Eleven.

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