Fair Work Ombudsman
Citation: FWO-2023-07-17-bakers-delight-franchisor-litigation-media-release
At a glance
- Respondent
- Bakers Delight Holdings Pty Ltd
- Penalty
- $1,250,000
- Employees affected
- 142
- Awards cited
- MA000013
What happened
The Fair Work Ombudsman has commenced legal action against Bakers Delight Holdings Pty Ltd, the Australian franchisor of the Bakers Delight chain. The action relates to alleged underpayments totaling $1.25 million to 142 mostly young staff at three Hobart stores (Kingston, Lindisfarne, and Eastlands) between July 2017 and October 2020. The franchisee, Make Dough Enterprises Pty Ltd, owned and managed by John Vince Puglisi and Lisa Kay Puglisi, allegedly directly employed and underpaid the workers. The company is now in liquidation. The franchisor is accused of knowing about the underpayments after February 2019 but failing to prevent further issues.
What was decided
The Fair Work Ombudsman is taking legal action in the Federal Court against Bakers Delight Holdings Pty Ltd, alleging it is liable for $642,162 in underpayments. The Ombudsman argues the franchisor failed to take preventative action after becoming aware of the franchisee's underpayment practices. The case highlights the potential liability of franchisors who fail to address non-compliance within their networks. The FWO is also taking action against the Puglisi couple and their company, Make Dough Enterprises. All alleged underpayments remain outstanding.
What it means for employers
This case demonstrates that franchisors can be held legally responsible for the actions of their franchisees. Employers, particularly those operating franchise systems, must proactively monitor compliance and take steps to prevent underpayments and other breaches of workplace law. Failing to address known issues can lead to significant financial penalties and reputational damage.
What it means for employees
Employees, especially young and vulnerable workers, should be aware of their rights and entitlements. If you suspect you have been underpaid or treated unfairly, contact the Fair Work Ombudsman for assistance. The FWO prioritises protecting vulnerable workers and will investigate concerns about pay and entitlements.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2023-media-releases/july-2023/20230717-bakers-delight-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 →