7-Eleven Stores – Award & Immigration Compliance

I think we are all familiar with 7-Eleven convenience stores and, if not to purchase snacks or supplies at some point, maybe it’s because they have recently been in the media.

Following a raid by the Fair Work Ombudsman, it was revealed that of 20 stores audited, 60% were underpaying their staff.   Many of the 4,000 staff members employed across Australia were international students on student visas.  Their student visa’s meant they could only work a maximum of 20 hours a week.

A recent investigation by Four Corners and Fairfax has shown that aside from underpayments, 7-Eleven franchisees have also been fabricating employee records to hide the true hours worked.

Immigration issues and restrictions aside, even if as an employer you are paying the minimum rate under the relevant award, there are still many other clauses in the award with which to comply.  For example, notice for rosters, leave, breaks, penalty rates and other entitlements.   If you are paying above the minimum award rate you need to ensure you are paying enough, and specify, what is included in the above award rate.

Not only will this cost the franchisees and most likely franchisor a significant amount in unpaid wages and penalties, it also has the potential to destroy their brand, their clientele, their profits and, of course, because of the many people issues which will prevent them from maximising the ROI from their staff.   As, we keep saying at HR Business Direction, there is more to compliance than mitigating risks.

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