undertook a number of in-depth investigations of 7-Eleven stores that were the subject of requests for assistance from employees. These investigations disclosed concerning levels of non-compliance with the Fair Work Act 2009 (FW Act) and Fair Work Regulations 2009 (FW Regulations), including instances of deliberate manipulation of records to disguise underpayment of wages. To identify and address the drivers of non-compliance, the Inquiry examined the actions and considered the motivations of workplace participants. It sought to better understand the respective roles of 7-Eleven, its franchisees and their employees in the network’s operating model and culture. In particular, the Inquiry sought to determine if 7-Eleven had a role in the alleged falsification of employment records and underpayment of wages by franchisees. The Inquiry found 7-Eleven’s to workplace matters, while ostensibly promoting approach compliance, did not adequately detect or address deliberate non-compliance and as a consequence compounded it. In particular, instances where franchisees created false and misleading records to satisfy 7-Eleven’s auditing and payroll regime while continuing to underpay employees. Investigations of stores included in the 20 store sample and of stores investigated as part of the wider Inquiry have led to a range of enforcement actions, including: seven matters filed before the Federal Circuit Court one Enforceable Undertaking made 20 Letters of Caution issued 14 Infringement Notices issued three Compliance Notices issued over $293 500 recovered for workers. This report examines the operating environment in which problems surfaced and considers what influence the 7-Eleven model had on franchisees and their behaviour. It discusses the drivers of non-compliance and details recent changes made by the network to ensure future compliance following public scrutiny. It ends with a number of recommendations designed to: promote a sustainable culture of compliance across the 7-Eleven network enhance the to bring to account entities and persons FWO’s effectiveness responsible for exploiting vulnerable workers on temporary working visas.
undertook a number of in-depth investigations of 7-Eleven stores that were the subject of requests for assistance from employees. These investigations disclosed concerning levels of non-compliance with the Fair Work Act 2009 (FW Act) and Fair Work Regulations 2009 (FW Regulations), including instances of deliberate manipulation of records to disguise underpayment of wages. To identify and address the drivers of non-compliance, the Inquiry examined the actions and considered the motivations of workplace participants. It sought to better understand the respective roles of 7-Eleven, its franchisees and their employees in the network’s operating model and culture. In particular, the Inquiry sought to determine if 7-Eleven had a role in the alleged falsification of employment records and underpayment of wages by franchisees. The Inquiry found 7-Eleven’s approach to workplace matters, while ostensibly promoting compliance, did not adequately detect or address deliberate non-compliance and as a consequence compounded it. In particular, instances where franchisees created false and misleading records to satisfy 7-Eleven’s auditing and payroll regime while continuing to underpay employees. Investigations of stores included in the 20 store sample and of stores investigated as part of the wider Inquiry have led to a range of enforcement actions, including: seven matters filed before the Federal Circuit Court one Enforceable Undertaking made 20 Letters of Caution issued 14 Infringement Notices issued three Compliance Notices issued over $293 500 recovered for workers. This report examines the operating environment in which problems surfaced and considers what influence the 7-Eleven model had on franchisees and their behaviour. It discusses the drivers of non-compliance and details recent changes made by the network to ensure future compliance following public scrutiny. It ends with a number of recommendations designed to: promote a sustainable culture of compliance across the 7-Eleven network enhance the FWO’s effectiveness to bring to account entities and persons responsible for exploiting vulnerable workers on temporary working visas.
fair_work_ombudsman_report_into_7-eleven.docx