Fair Work takes 85 Degrees to court in landmark case
အကျဉ်းချုပ်
Date Reported: 23 Feb 2023
Location: Australia
Companies
85 Degrees - Other Value Chain EntityOther
Not Reported ( Bakeries ) - EmployerAffected
Total individuals affected: 20
Migrant & immigrant workers: ( Number unknown - Location unknown , Bakeries , Gender not reported , Documented migrants )Issues
Wage Theft , Minimum Wage , Access to InformationResponse
Response sought: မဟုတ်
Action taken: The bakery was fined AUS$1.44million in May 2024 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.
Source type: News outlet
The Fair Work Ombudsman is taking franchisor 85 Degrees to court in a landmark case that franchisors will watch closely.
The legal proceedings relate to alleged underpayments by franchisees and it is the first time the FWO has lodged such a case.
FWO alleges that 85 Degrees was liable as a “responsible franchisor entity” under the Fair Work Act for alleged non-compliance by eight franchisee-operated outlets in Sydney in 2019.
It argues the franchisor is legally liable because it should reasonably have known its franchisees would underpay the workers or commit similar contraventions...
Between January 1 and December 31, 2019, nine workers were allegedly underpaid minimum rates, overtime entitlements, annual leave entitlements, penalty rates for weekend, public holiday and evening work. Individual underpayments ranged from $239 to $15,198.
The FWO discovered the alleged underpayments, pay slips, and record-keeping breaches when it conducted proactive audits....