Earlier this week, the Government’s Fair Work Amendment bill passed the Senate. While this is good news, there are far more reforms to be implemented.
Franchise giant 7-Eleven is at the forefront of pushing for these reforms. When franchisees are found to be unlawfully underpaying employees, for example, there is so much red tape involved for the industry to terminate the franchise it is nearly impossible to pursue.
In order for franchisors to have to power to terminate a franchise for illegal work practices, the Franchising Code of Conduct and the Oil Code need to be passed as well.
7-Eleven has been working to change laws to protect itself, the franchisees, and the workers for years. Success in passing more reform bills will not only be beneficial to industry leaders such as 7-Eleven, but will ultimately help franchises of any size.
- Underpayment is not a valid reason for a franchisor to terminate an agreement. 7-Eleven wants to change that.
- The only way underpayment can be the reason to terminate an agreement is by having proof that fraud was involved.
- 7-Eleven calls for the Franchising Code of Conduct and Oil Code to be ammended to find a solution for tearing down the barriers to ending franchise agreements.
“7-Eleven is calling for the two relevant industry codes –the Franchising Code of Conduct and the Oil Code – to be amended so franchisors have the right to immediately terminate a franchise agreement in the case of serious non-compliance with Commonwealth Workplace Laws or Fair Work Instruments.”