Fair Work Ombudsman
Citation: FWO-2023-02-09-85-degrees-franchisor-litigation-media-release
At a glance
- Penalty
- $32,321
- Employees affected
- 20
- Awards cited
- MA000033
What happened
The Fair Work Ombudsman has commenced legal action against 85 Degrees Coffee Australia Pty Ltd ('85 Degrees'), the franchisor of the '85°C Daily Café' brand. The action alleges that 85 Degrees is liable for alleged underpayments and record-keeping breaches at eight franchisee-operated outlets in Sydney during 2019. Nine workers were allegedly underpaid a total of $32,321. Twenty workers, including young workers and visa holders, were affected by record-keeping and pay slip contraventions. This follows a previous penalty of $475,200 for exploiting Taiwanese students in 2016 and 2017.
What was decided
The Fair Work Ombudsman alleges that 85 Degrees failed to take reasonable steps to prevent breaches by its franchisees. The court will determine if 85 Degrees is liable for the alleged underpayments and record-keeping contraventions. The Ombudsman emphasizes that franchisors can be held accountable for failures to prevent breaches within their networks. The case highlights the importance of protecting vulnerable workers and encourages them to report concerns about pay or entitlements.
What it means for employers
This case demonstrates that franchisors can be held liable for the actions of their franchisees if they do not take reasonable steps to ensure compliance with workplace laws. Franchisors should implement robust systems to monitor franchisee compliance and address any identified issues. A previous enforceable undertaking is not a guarantee of future compliance.
What it means for employees
Workers, particularly those who are young or visa holders, should be aware of their workplace rights and entitlements. If you suspect you have been underpaid or your employer has not kept proper records, contact the Fair Work Ombudsman.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2023-media-releases/february-2023/20230209-85-degrees-franchisor-litigation-media-releaseWant more cases like this?
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This summary was drafted by AI from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →