7-Eleven Stores Face Legal Charges For Alleged Employee Underpayment

Two 7-Eleven franchises face legal actions for allegedly underpaying their staffs by $31,500 by denying penalty rates.

The Fair Work ombudsman stepped up and took the legal action on behalf of the 21 employees who were unfairly compensated. Many of the staffs are international students and were allegedly paid flat rates as low as $17.74 an hour, to which they claimed that they have been underpaid between $98 and $5080.

The two franchises of the international renowned chain of convenience stores operate in Brisbane's central business district. These two stores, located at 231 George Street and 174 Adelaide Street, were reportedly targeted in surprise, late-night visits by the ombudsman. While the employer watchdog has already warned the owner of the franchise, Jason Yuan, to his obligation of paying penalty rates, it seems that he didn't listen well, hence receiving legal charges as a consequence.

Yuan is purportedly the sixth operator of 7-Eleven to appear before the court since 2009. He is expected to appear before the federal circuit court in Brisbane on Feb. 11.

A spokeswoman for the 7-Eleven said in a statement in August: "7-Eleven strongly supports the Fair Work ombudsman's investigation into employees' pay and conditions currently under way at a select number of franchisees' stores."

In light of these prevailing issues the convenience store chain has been dealing with for the past few years, former head of the Australian Competition and Consumer Commission, Allan Fels, will allegedly be conducting an independent inquiry on behalf of 7-Eleven.

As per Fairfax Media via Sydney Morning Herald, 7-Eleven's 620 Australian stores were revealed to have committed systemic wage abuse which prompted the resignation of the chain's chief executive Warren Wilmot and co-owner Russ Withers. A series of investigations were also made against the industry.

Now, Fels reportedly aims to further investigate the series of serious allegations of underpayments and even an alleged cover-up by head office of 7-Eleven.

Tags

7-Eleven, franchise, convenience store chain, jason yuan, fair work ombudsman, employee underpayment, penalty rates, allan fels

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