Phi Finney McDonald launches class action against Domino's alleging staff were underpaid

Phi Finney McDonald launches class action against Domino's alleging staff were underpaid

A class action law suit has been launched by Phi Finney McDonald, alleging Domino's Pizza (ASX: DMP) underpaid delivery drivers and in-store workers.

The law firm is looking for expressions of interest in its class action against the Australian pizza giant on behalf of employees employed between 24 June 2013 and 24 January 2018.

Phi Finney McDonald alleges that between 24 June 2013 and 24 January 2018 delivery drivers and in-store workers who worked for Domino's and its franchises in Australia were employed under a series of employment agreements that did not pay certain entitlements.

These underpayments allegedly included Domino's not paying 25 per cent loading for casual workers, additional penalty rates for working after-hours, on weekends and on public holidays, and a laundry allowance to assist with uniform cleaning.

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

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

The law firm is looking to win Domino's employees the difference between the wages paid under the employment agreements and the amount they should have been paid under the Award.

Domino's this morning has acknowledged that it has been served with an unsealed class action proceeding filed in the Federal Court of Australia by Phi Finney McDonald. It says that it intends to defend the proceedings.

The pizza giant was aware of certain media reports about the class action that were published on Monday. The company has also refuted the claims made in the press.

"One press article has reported that the matter relates to whether the pay and conditions of drivers and in-store workers employed by franchisees should have been determined by reference to a series of industrial agreements rather than the Fast Food Industry Award 2010," says Domino's in a brief statement to the ASX.

"Domino's is of the view that those industrial agreements applied to its franchisees at all relevant times."

"Domino's takes the proper payment of its team members seriously. Any formal proceedings received will be reviewed and actioned in the ordinary course."

As reported by the Herald Sun, the class action is the result of an investigation by the Retail and Fast Food Workers' Union.

According to union secretary Josh Cullinan, speaking to the Herald Sun yesterday, tens of thousands of workers were allegedly impacted by underpayment from Domino's.

Phi Finney McDonald's class action is being funded by Therium.

Shares in Domino's are down 0.89 per cent to $38.78 per share at 10.26am AEST.

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