7-Eleven franchisees investigated by Fair Work Ombudsman

The Fair Work Ombudsman is preparing to audit 63 Victorian 7-Eleven convenience stores, with letters sent to franchisees asking them to supply employment records including time-and-wages sheets.

If any issues of concern are found, Ombudsman executive director Michael Campbell said in a statement the campaign could be extended to all 7-Eleven stores in Victoria, with the possibility of both night-time visits and interviews with franchisees and employees.

The campaign comes after an audit of convenience stores in Melbourne and Sydney recouped over $162,000 for 168 underpaid works. Issues identified by inspectors, including Campbell, included workers not being paid, non-payment of weekend and night penalty rates and non-compliance with record-keeping and payslip obligations.

Already five 7-Eleven stores in the Melbourne CBD were requested to reimburse 88 works for $112,000 in total, with a sixth store requested to credit nearly 1,000 hours of annual leave to 12 staff.

“To the credit of the franchisor of Victoria’s 7-Eleven stores, it shares our concerns with the issues identified and agreed to assist us in this extensive state-wide campaign,” Campbell said.

“A significant number of 7-Eleven workers, such as young people, foreign students and migrants from non-English speaking backgrounds, are vulnerable to being underpaid and exploited because they are often not aware of their workplace rights or are reluctant to complain.”

Campbell said the office will work with employees to increase their awareness of workplace rights and the role of the Fair Work Ombudsman.

“It is important these workers know there is a committed regulator they can turn to if they are concerned they are not being treated fairly. Complaints can be made anonymously and confidentially.”

Peter Vitali from CCI lawyers says the new Fair Work laws haven’t given the Ombudsman any specific new powers, but warns businesses the office will investigate breaches of the law whenever they arrive.

“The reality is they have very extensive powers to enforce the law, and have probably been more actively using those powers than any time in living memory. So they are very aggressive, and they have made no secret of the fact they intend to rectify breaches of the law when they find them.”

The audits are set to begin within weeks, and will take place over the next several months.