Franchisors Might Step Into Workplace Debate

Sydney Morning Herald:

Franchising’s peak body is planning to crack down on unfair treatment of employees in a bid to avoid further embarrassment by allegations of breaches in workplace laws.

The Franchise Council of Australia’s chief executive Richard Evans (photo) told MySmallBusiness it planned to ask members to consider adopting a new standard that could outline the conditions – including pay rates – under which a franchisee employed staff in the terms of its agreements.

Small businesses have been the enthusiastic supporters of the government’s reforms to industrial relations, with employers entitled to negotiate Australian Workplace Agreements directly with staff.

But the franchise industry, which contributes 14% of national GDP, has been caught up in embarrassing revelations about the treatment of young workers.

Last month Bakers Delight issued a notice for breach of the franchise agreement to a franchisee in the Sydney suburb of Kareela after the Workplace Ombudsman began investigating allegations the bakery tried to enforce illegal conditions upon young workers. Read more.