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Domino's Australia Considers Appeal After Court Finds It Misled Workers on Pay
Domino’s Pizza Enterprises said it is considering an appeal after Australia's Federal Court found the company made misleading representations regarding employee pay agreements, leading to underpayments for thousands of workers.
Details of the Ruling
The Federal Court on Wednesday ruled in favor of a class action lawsuit brought by a former worker on behalf of delivery drivers and in-store employees at Domino's franchises. The suit covered a period between June 2013 and January 2018.
The court found that the company's historical representations about the application of certain enterprise agreements were misleading. Specifically, it ruled that a coverage clause in a 2005 enterprise agreement was invalid. The workers had argued they should have been compensated under the Fast Food Industry Award 2010, which generally provides for higher rates of pay.
AdFinancial Implications
The court determined that Domino's conduct caused the lead applicant to suffer a financial loss through underpayment. The former worker's loss was assessed at approximately A$11,869 (about US$8,326), plus interest.
In a statement on Thursday, Domino's said its potential wider exposure to other members of the class action group remains "highly uncertain and unquantifiable." The company is currently assessing possible grounds for an appeal of the court's decision.
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