The investigator Fair Work Ombudsman issued 17 formal cautions on Dominos (ASX:DMP) after finding breaches of workplace law, non-payment to employees, inaccurate record keeping and unauthorized deductions.
The report of 33 Dominoâs stores audit issued by FWO on 7 September 2018, found that just 4 stores were fully compliant with the workplace law while investigation is still on in ten stores.Â [optin-monster-shortcode id="wxhmli4jjedneglg1trq"]
FWOâs investigation revealed that 20 workers had been underpaid a total of $1,978 in a month. In addition to these underpayments discovered, the inspectors found other defalcations in the workplace system which included non-payment of hours worked,Â unauthorized deductions, inadequate time records, and leave entitlements and delivery allowance breaches.
But before coming to these results, inspectors interviewed 144 Dominoâs workers and analyzed employee records at 33 Dominoâs stores.
However, in response to FWO investigations, the company stated that correct payments were made to almost 97% of employees as only 19 out of approximately 600 Dominoâs employees were issued to be underpaid by the investigator.
In clarification of misstatement discovered in employees accounts, CEO Nick Knight said: âOur goal is to ensure team members receive their correct entitlements at all times and, where this has not been the case as revealed by FWOâs investigation, we will ensure any wages underpayments are rectified as quickly as possible.â
The investigation reports told that 65% of franchisees being audited belong to non-English speaking background and have little knowledge of Australian workplace laws. Also, the audits found many vulnerable employees working at Dominoâs stores in which 72 per cent were under 25 years of age and 48 per cent were visa holders.
The Fair Work Ombudsman has been calling on Dominoâs head office to act after finding breaches of workplace law across 19 stores inÂ Brisbane,Â Sydney,Â MelbourneÂ andÂ Adelaide. It has also been stated that further non-compliance could lead the FWO to charge financial penalties on Dominoâs.
âIt is in head officeâs best interests to set clear expectations with their stores, provide them with comprehensive training and support and regularly check that workplace laws are complied with,â said Fair Work Ombudsman Sandra Parker
Moreover, further Dominoâs compliance activity is expected to be conducted by Fair Work Ombudsman within 12 months.
Not withstanding the negative results of FWOâs investigation, Dominoâs share price surged 4.739% to $54.810 on 7 September 2018 (4:52 PM AEST). The stock has seen performance change of +24.15% over the past one year.
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a companyâs prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkineâs team of analysts bought you handpicked report for âTop 25 Dividend Stocks For 2018.â
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people.Â Kalkinemedia.comÂ and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.