- The Guardian
- Issue #2200
Photo: The Pizza Review – flickr.com (CC BY 2.0)
Thousands of low-paid Domino’s franchisee workers could be entitled to significant compensation following a landmark victory against Domino’s Pizza Enterprises.
The Federal Court found the pizza giant misled franchisees by directing them to underpay thousands of drivers and in-store staff under outdated employment agreements over five years that excluded key entitlements.
In 2019, Phi Finney McDonald launched the class action against Domino’s on behalf of lead applicant Riley Gall, a former Domino’s delivery driver for underpayment of wages under the Australian Consumer Law for loss caused by misleading and deceptive conduct. The class action covers delivery drivers and in-store workers employed by Domino’s Australian franchisees between 2013 and 2018.
Any delivery drivers or in-store workers who worked at Domino’s between 2013 and 2018 are invited to register interest with Phi Finney McDonald.
The Court found that Domino’s instructed its Australian franchisees to pay delivery drivers and in-store workers under enterprise bargaining agreements when some employees were covered under the Fast Food Industry Award that has better terms and conditions.
These workers should have received benefits under the award, including a 25% loading for casual workers, additional penalty rates for working after-hours, on weekends and public holidays and minimum three-hour shifts.
A forensic investigation conducted by the Retail and Fast Food Workers’ Union (RAFFWU) uncovered the underpayments.
His Honour Justice Bernard Murphy found the “Award rather than the Agreements applied to the employment of the applicant and a substantial cohort of Delivery Drivers and In-Store Workers employed by franchise operators during the relevant period.”
Consequently, Domino’s conduct in making the representations was “objectively wrong,” and “was therefore misleading or deceptive conduct or conduct which was likely to mislead or deceive, in contravention of s 18 of the ACL,” he said.
