DOMINO’S RESPONDS TO FWO INVESTIGATION (AU)
The Fair Work Ombudsman (FWO) has recently reported on its 18-month investigation of Domino’s stores, which complements Domino’s own comprehensive internal compliance program.
The findings of the report revealed issues, the majority of which are administrative errors, totaling a little under $2,000 of underpayment of wages for 20 team members across 19 stores over a four-week period. Specifically, one franchisee with two stores was responsible for over $1,500 of the underpayment. The balance occurred across the remaining 17 stores where the average underpayment was under $25 per employee.
Further, the underpayments related to only 19 employees out of an approximate 600 (3.2%). Therefore, correct payments were made to almost 97% of employees during the audit period.
The FWO found contraventions resulting in underpayments in;
Three of the six corporate and joint venture stores audited totalling $131.86; and
16 of the 17 franchised stores which have been audited, totalling approximately $2,000 ($1,530.68 of which was attributable to one franchisee).
Domino’s Australia CEO Nick Knight said, based on the FWO’s recent publicised compliance activity into other businesses in multiple sectors, that required back payments of tens of thousands of dollars or more, Domino’s compliance systems were already well advanced.
“We want our systems to be perfect and will continue to work towards this goal.
“Domino’s co-operated fully with the Fair Work Ombudsman throughout the investigation. We understand that it’s our responsibility to ensure our corporate stores are compliant and that we train and educate franchisees to ensure they’re doing the right thing 100 per cent of the time.
“We have been saying for quite some time that there’s no systemic issues across the business and the results from this investigation, as well as our own nationwide store audit, support this.
“Our goal is to ensure team members receive their correct entitlements at all times and, where this has not been the case as revealed by FWO’s investigation, we will ensure any wages underpayments are rectified as quickly as possible,” Mr Knight confirmed.
In relation to Domino’s corporate stores, the FWO found issues in three of the five stores investigated, relating to paperwork for sick leave and inaccurate time records as a result of minor adjustments being made.
“We will continue to work hard with our franchisees and employees as we strive to achieve a 100 per cent compliance rate. This includes providing additional training and ongoing audits in the attempt to fulfil our responsibility and obligation to protect team members.
“Since the audit period we have been doing our utmost to ensure team members are paid correctly and, if we find deliberate breaches of employment obligations we will take firm action.”
Anyone who might have questions or concerns relating to wages or employment conditions are encouraged to contact Domino’s independent whistleblower hotline on 1800 992 457, email dominoswhistleblower@deloitte.com.au or refer to the FWO direct.