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5 Jun 2024

Australia: "Landmark" decision to hold bakery 85 Degrees liable for wage violations in franchisees results in fine for failing to ensure compliance

Taiwanese bakery franchisor, 85 Degrees, has withdrawn its operations from Australia following a "landmark" case filed with the Fair Work Ombudsman (FWO) which found 85 Degrees liable for its franchisee conduct. The case relates to instances of workers, including visa holders, being underpaid a total of AUS$32,321 in 2019. FWO took 85 Degrees to court in early 2023 over the allegations.

The bakery was fined AUS$1.44million for "systematic failure to ensure compliance within its franchise network" and is the first instance of the FWO using franchisor entity provision of Protecting Vulnerable Workers reforms and holding a franchisor accountable for the conduct of its franchisees.

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