7-Eleven Australia pays back 122 million USD to workers after underpayment scandal
Source: Xinhua | 2020-10-31
Following an investigation by the Fair Work Ombudsman (FWO), 7-Eleven Australia has paid back more than 173 million Australian dollars (122 million U.S. dollars) to employees and made several improvements .
The ombudsman's inquiry found several 7-Eleven stores had been deliberately underpaying staff and falsifying records to disguise it.
The inquiry led to 11 lawsuits against 7-Eleven franchisees, resulting in more than 1.8 million Australian dollars (1.26 million U.S. dollars) in penalties, including for operating unlawful cash-back schemes, paying flat rates to workers, and falsifying records.
After its underpayment scandal came to light, 7-Eleven back-paid more than 122 million U.S. dollars in wages, interest and superannuation to 4,043 current and former franchisee employees between September 2015 and February 2020, the FWO revealed in a statement on Friday.
The FWO said 7-Eleven had also made substantial improvements to its payroll and time-recording systems under a three-year compliance partnership, which started in December 2016.
The company put in place a biometric time recording system across all its Australian stores, requiring employees to clock in and out with a thumbprint, which is cross-checked against employee facial recognition images and store rosters to enable more accurate recording of working hours.
Other measures include requiring all staff to be paid electronically, new compulsory online training on employment conditions for new employees, and setting up an internal investigations unit.
"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."
There are more than 700 stores in the 7-Eleven network across Australia, including those operated by over 530 franchisees.
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