Companies that own others, such as holding companies or franchisees, will be required by the Fair Work Act to be responsible to a much greater degree when it comes to accountability. When their subsidiaries breach the standards of the Fair Work Act, more of the impacts will fall upon the parent company. The changes were introduced in 2017, prompted by the 7-Eleven wage scandal. Maximum penalties for violations have increased by a factor of ten. The law also makes provisions for eliminating ignorance as a defense should concerns arise.
Key Takeaways:
- This new law serves to address exploitation of vulnerable workers, and holding supervisors responsible.
- This law also provides that franchisors and holding companies can be held liable of certain laws by franchisees and/or subsidiaries.
- The company can be held liable if they “knew or could reasonably expect to have known” about a contravention, or one of the same character was likely to occur.
“A raft of new changes came into effect last month under the Fair Work Amendment…”
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