Domino's rejects underpayment claims

Domino's rejects underpayment claims

Domino's Pizza (ASX: DMP) denies it misled franchisees over employee payment terms and has reiterated plans to defend a class action launched by Phi Finney McDonald.

Earlier this week it was revealed the law firm had started the action alleging Domino's underpaid delivery drivers and in-store workers between June 2013 and January 2018.

The restaurant was under fire for allegedly having its franchisee employees work without entitlements like 25 per cent loading for casual work, penalty rates or uniform cleaning allowances.

"If delivery drivers and in-store workers had been properly paid under the Fast Food Industry Award, they would have received these entitlements," Phi Finney McDonald said.

"As a result, most delivery drivers and in-store workers in Australia were paid less than they should have been paid."

In response Domino's claimed it was of the view "those industrial agreements applied to its franchisees at all relevant times".

In an update today, the nation's largest pizza company confirmed it still had not been formally served with the class action court documents but it did have an unsealed copy of documents reportedly filed in the Melbourne Registry of the Federal Court of Australia on 24 June 2019.

"The documents allege that Domino's misled franchisees who, in reliance upon Domino's representations and conduct, paid their employees in accordance with a number of industrial agreements rather than under the Fast Food Industry Award 2010," the company said.

"Domino's confirms that it did not mislead its franchisee employers as to their employee payment obligations.

"The entitlements of franchisee employees during the relevant period were contained in a series of industrial instruments that were lawful, valid and applicable at the time."

Domino's asserted there was no claim that the industrial instruments were not valid at the relevant times.

"The lead applicant claims compensation against Domino's for alleged underpayment by the lead applicant's franchisee employer.

"The lead applicant does not make any claim against his franchisee employer and no franchisee employer is a party to the action.

"The documents do not quantify any loss by the lead applicant or the alleged group. Domino's rejects the allegations made in the documents and intends to defend the action."

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