Fair Work Ombudsman audited 34 franchisees of Pizza Hut and found that 24 out of them were not meeting all of their legal obligations to delivery staff. The audit found that many of the franchisees had misclassified delivery drivers as independent contractors rather than employees, meaning that full entitlements were not paid to them. As a result of this, Pizza Hut owes a total of $12,086 to its delivery drivers as they were either not paid proper minimum hourly rate, or they missed out on allowances for laundry. Only two franchisees were meeting all of their legal obligations to delivery staff.
Not only this, two franchisee operators in Sydney and one in Queensland paid their workers on a “per deliver” bases at a rate which was as low as $5.70. They also failed to issue pay slips or keep proper staff records.
Underpaid staff audited by Fair Work Ombudsman are mainly students, one of them a student visa holder from India. Most of the audited staff was also under the age of 24.
Fair Work Ombudsman Natalie James said,
“We know that younger people, who have less experience in the workplace, are more likely to be unaware of their rights,”
“In some instances, drivers were paid as little as $5.70 per delivery while also being made to cover fuel and vehicle operation costs.”
She said that Fair Work Ombudsman will continue to monitor Pizza Hut outlets and will follow up with those identified through this process to ensure that areas of non-compliance are being addressed. But she also said that Pizza Hut is yet to commit ensuring its workers are properly treated under workplace laws.
This enquiry follows a deeper scandal at 7-Eleven convenience store chain, which was forced to compensate around 2,000 past and present employees who were underpaid.
In a statement sent to ABC, Pizza Hut Australia said it takes its responsibility seriously and has been working with Fair Work Ombudsman. Chief Executive Lisa Ransom said,
“Pizza Hut does not tolerate non-compliance and is committed to ensuring all franchises meet their legal obligations.”
Ms Ransom also suggested that employees and contractors should speak up if they have concerns about their rights and rates of pay.
