What franchisors can and should do now
- Get a franchise lawyer to review your current franchise agreements, paying particular attention to the franchisee’s obligations in respect of its employees, ensuring there are mechanisms in place that allow the franchisor access to employee records and payroll information to allow for audits. Essentially, the franchisor needs to make clear the obligation on franchisees to comply with all workplace relations laws.
- Educate your franchisees! Implement mandatory training programs across the franchise network to bring franchisees up to speed with these changes to workplace relations laws and their obligations as employers. This could be complemented with fact sheets and guides outlining minimum pay rates or by providing sample engagement letters and pay slips.
- Most importantly, considering the impact the new laws have on franchisors, immediate corrective action should be taken against franchisees in circumstances where a complaint is made by an employee or non-compliance is identified following an audit.
Remember, we’re here to help
While it is important to understand the reach of these laws, we advise franchisors not to panic. The next step, to ensure your franchise network is doing the right thing by its employees, is to seek legal advice. Our expert legal team will sit down with you, provide a detailed, step-by-step review of these laws to see how they may affect your business.
Should you require further information on this new legislation or have any franchise related questions – we can help you Rise Above the Profit Margins. Please contact our commercial lawyers or call Lazarus Legal on (02) 8644 6000.