Chris Power outlines how every HR department can learn some valuable lessons from 7-Eleven's 2015 employee underpayment crisis.
It was the wage scandal that sent shock waves through HR departments across Australia. Workers at our nation’s biggest convenience chain being paid as little as $10 per hour before tax - a collusion between franchisees known as the ‘half pay’ scam.
Staff at the franchises were allegedly being underpaid by half the award rate and foreign workers were threatened with deportation if they spoke up. Internal documents reveal that between July and August 2015, 7-Eleven head office reviewed the payroll compliance at 225 stores and found that 69 stores had ongoing payroll issues.
Of course 7-Eleven aren’t the only company in Australia found to be flouting the law and underpaying staff. Pizza Hut were accused of paying workers as contractors rather than full-time employees last month, depriving workers of income, penalty rates, superannuation and insurance.