Fair Work Ombudsman finds “systemic issues” within the Domino’s network

The Fair Work Ombudsman (FWO) has handed down findings of an 18-month investigation into pizza chain Domino’s, finding that 20 employees have been underpaid.

Inspectors have issued 17 formal caution notices to Domino’s over what Ombudsman Sandra Parker said were “systemic issues” within the franchisor’s network.

An investigation of 874 employee records across 33 stores found that 20 workers had been underpaid a total of $1,978 over a one-month period.

Breaches of workplace law were identified in 19 stores in Brisbane, Melbourne, Sydney and Adelaide, the FWO said.

A raft of other issues were identified, including non-payment for hours worked, delivery allowance, leave entitlements, unauthorised deductions and record keeping breaches.

The ASX-listed business is now on notice and could be pursued for financial penalties if future instances of non-compliance are identified.

Domino’s has been dogged by allegations of underpayment in its network for over a year, following a Fairfax media report in 2017 that alleged underpayment was widespread in its franchise network.

Parker said that while Domino’s had made improvements to its processes, the company should be monitored to ensure ongoing compliance.

“We expect better from a major network like Domino’s — it should not be up to the Fair Work Ombudsman to find and alert businesses to the systemic issues identified,” she said in a statement on Friday.

“It is in the head office’s best interests to set clear expectations with their stores, provide them with comprehensive training and support and regularly check that workplace laws are complied with.”

Domino’s will be subject to unannounced site visits over the next 12 months, while investigations are continuing into a further 10 stores owned by one franchisor.

In a statement released on Friday, Domino’s Australia chief executive officer Nick Knight said the business would do its best to ensure it paid its employees properly.

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 wage underpayments are rectified as quickly as possible,” Knight said.

“We will continue to work hard with our franchisees and employees as we strive to achieve a 100% compliance rate.”

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