, Australia

Gloria Jean's reviews allegations on underpaying staff

Franchisees to be reprimanded if found guilty.

The franchisees of a Gloria Jean's outlet in Melbourne are to face court after allegedly underpaying 22 employees, many of which were international students and one-third of them aged under 21, more than $83,000, according to a news article published by website Franchising yesterday.

Click here to read full story at Franchising.

According to the story, facing court is Primeage Pty Ltd, which operates a Gloria Jeans franchise in the Melbourne suburb of Caulfield, and company directors Tsinam Fu, of Clayton and Ping Ostrovskih, of Rowville.

"The Fair Work Ombudsman alleges the employees were paid a flat rate of $8 to $10 an hour, which if proved in court would mean they were underpaid their minimum hourly rates, weekend and public holiday rates, casual loadings, minimum shift pay and a clothing allowance."

Gloria Jean's has responded to QSR Media regarding the allegations.

"Gloria Jean’s Coffees is actively reviewing this incident and will take action if a breach of law is demonstrated," wrote Glenn Hindson, State Manager - Victoria, in an e-mail to QSR.

"Gloria Jean’s Coffees has training programs and systems in place to support Franchise Partners in running their businesses, however each Franchise Partner is responsible to ensure that their business complies with all applicable laws under the franchise agreement, which includes compliance with employment law."

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