FAIR WORK PENALISES ANOTHER 7-ELEVEN OPERATOR

Written on the 6 July 2016

FAIR WORK PENALISES ANOTHER 7-ELEVEN OPERATOR

ANOTHER 7-Eleven franchisee has been penalised by the Fair Work Ombudsman for underpaying overseas workers.

Husband-and-wife duo Haiyao Xu and Yiran Gu have been penalised $20,000 each, while the Federal Circuit Court has also penalised their company Hiyi Pty Ltd a further $110,000.

This follows legal action taken by Fair Work against the franchisees in relation to the underpayment of 12 employees at their previously owned Parkville store in suburban Melbourne.  They now operate another store in the CBD.

The employees were underpaid a total of $84,047 between September 2013 and September 2014.  These amounts have now been paid back in full, however Fair Work has entered into an enforceable undertaking with the couple and their new store.

At the city store, employees were short-changed a total of $106,189 between June 2013 and August 2015, with 11 employees progressively being paid back.

The married couple and their company first came to the Fair Work Ombudsman's attention when the Parkville store was targeted for a surprise night visit by Fair Work inspectors late in 2014.

Inspectors discovered that employees were paid flat rates between $12-17 an hour.

However, Gu and Xu made false entries into the 7-Eleven head office payroll system to make it appear the employees had been paid award rates and that they had worked fewer hours than was actually the case.

The employees were entitled to receive more than $22 for normal hours and up to $46 an hour for some weekend, public holiday, night and overtime shifts.

Four of the employees were underpaid more than $10,000, with one short-changed $16,500.

Judge Suzanne Jones found deliberate and serious underpayment of vulnerable employees and contravention of fundamental minimum entitlements.

"Absent the audit of 7-Eleven stores engaged in by the Fair Work Ombudsman, it is likely that the underpayments would have continued unabated," she says.

"There can be no doubt that (Xu and Gu) understood their obligations, but set about a course of conduct to deliberately contravene the award and to disguise those contraventions.

"This conduct calls for full condemnation and approbation in determining the appropriate penalty."

The Fair Work Ombudsman conducted a national Inquiry into 7-Eleven and is currently in discussions with 7-Eleven about a robust and transparent arrangement that will satisfy the agency that head office is taking the necessary steps to build a franchise operating model that ensures workers employed in its network are correctly paid into the future.


Latest News

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter