Australia

La Porchetta underpayments expose brand risk

Recent press exposure regarding allegations of significant underpayments to staff have once again displayed the serious risk to brand equity that can result from franchisees not complying with Australia’s industrial awards and wages system. It has been has been reported that a La Porchetta franchisee believed he could ‘top up’ their sub-minimum wage pay packets by providing pizza and soft drinks. The case will appear in the Federal Circuit Court in Melbourne for a directions hearing on September 18 later this year.

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