Major convenience and fuel franchiser 7-Eleven has paid back over $173 million to employees after investigations revealed the company had been illegally underpaying their staff.
In 2016, an inquiry by the Fair Work Ombudsman (FWO) found several 7-Eleven stores had been deliberately falsifying records to reduce wages.
The FWO brought 11 litigations against 7-Eleven, resulting in courts awarding more than $1.8 million in penalties against them, including for operating unlawful cash-back schemes, paying unlawful flat rates to workers and falsifying records.
Following the fines, 7-Eleven Stores have back-paid $173,610,752 in wages, interest and superannuation accrued between September 2015 and February 2020 to 4,043 current and former franchisee employees.
As part of the compliance agreement entered into by 7-Eleven, the company has implemented a new time-recording system to ensure employees could accurately clock in and out of work.
In addition, all employees must now be paid electronically.
"After widespread non-compliance in its franchise network was identified, 7-Eleven has implemented extensive high-tech systems, training and employee assistance programs across its business," Fair Work Ombudsman Sandra Parker said.
"We will continue to monitor compliance in 7-Eleven outlets and encourage head office to consider entering into a second compliance partnership to ensure ongoing accountability," Ms Parker said.
There are more than 700 stores in the 7-Eleven network across NSW, Victoria, Queensland, Western Australia and the ACT, including those operated by over 530 franchisees.
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