Underpayment of Wages Assignment | Law Assignment
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Added on 2020-04-01
Underpayment of Wages Assignment | Law Assignment
Added on 2020-04-01
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Running Head: Law 1Law
Law2Introduction:Inquiry was commenced by Fair Work Ombudsman (FWO) in June 2014 in lieu of allegationsrelated to underpayment of wages and maintaining false employment records against the leadingretailer of Australia named as 7-Eleven Australia Pty Ltd (7-Eleven). This inquiry conducted byFWO investigated almost three allegations by conducting inspections of sites and analysis ofrecord keepings. This inquiry conduct investigations on other matters also which were requestedby the employees of 7-Eleven. Results of these investigations are shocking as it shows non-compliance of various provisions of Fair Work Act 2009 (FW Act) and Fair Work Regulations2009 (FW Regulations), and it also shows that company made false entries in their records(FWO, 2016). This report states various frauds committed by 7-Eleven stores and investigation conducted byFWO against the company. It also states the result of these investigations and consequencesfaced by company. Subsequently, paper is concluded with brief conclusion. About the company & history of non- compliance:In Australia, 7-Eleven was considered as largest retailer of petrol and convenience on the basis ofits market share and number of franchisee awards. Stores of 7-Eleven were operated under thelicense of US-based business 7-Eleven Inc., which was responsible to develop franchisees of 7-Eleven in Australia. 7-Eleven Inc. was actually incorporated in 1927, and it was determined aslargest operator of franchisee and licensor of convince stores (7-Eleven, 2017).
Law3First store of 7-Eleven in Australia was initiated in 1977 in Melbourne. In 1978, more storeswere opened by the company which includes first franchise store, first fuel site, and also first 24-hour site. All these stores were considered as key elements of the operating model of 7-Eleven.On 31st December 2015 almost 626 7-Eleven stores were operated in Australia throughout theAustralia. It must be noted that, almost 70% of these stores sell fuel and traditional merchandise.Allegations on 7-Eleven stores were not new and FWO receives various reports related to theseallegations from 2008 onwards from the employees of the stores. These employees continuouslyalleged the underpayment of wages from the stores of 7-Eleven. Concern of FWO wasincreasing because these underpayments of wages were directly linked with the inaccuraterecords of the stores. As employers of stores show less working hours of employees for thepurpose of showing that employees higher rates of pay, but in actual situations were completelydifferent (7-Eleven, 2017). Underpayment of wages & Workplace Ombudsman’s audit:Allegation were received by Workplace ombudsman in 2008 from an unregistered organizationwhich represents the workers of fast food and retail sector, that stores of 7-Eleven were involvedin the practice of double hours scam. Double hour scam means stores of 7-Eleven made recordsand pays only half amount to their workers actually worked. In other words, workers of 7-Elevenreceive only half amount as compared to amount which should have been paid by employersunder award rates. During the period of 2008-2009, number of stores established in Melbourneand Sydney are audited by FWO. The result of the audit conducted by FWO in Melbourne showsfraud of $112000 wages, and these wages were recovered for 88 employees in five stores. FWOinstructed 6th Store to credit almost 1000 hours of annual leave back in the records of 12
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