Franchise chains are in the headlines over workplace regulation. Both Pizza Hut and Domino’s are making news over employee contracts.

Domino’s has told staff that all casual employees with supervisory roles or those working in stores, will be offered permanent part-time employment.

However, news.com.au reports that the casual employees (many of whom are teenagers at school) have no choice in the matter with staff told at one store they had to sign the contract or they would not get any more shifts.

In a statement Domino’s said this was contrary to what was instructed to corporate store managers.

The national policy means a pay cut from casual rates but provides workers with entitlements such as annual leave, redundancy and notice of termination.

A Domino’s spokesperson told news.com.au that the move was geared to securing employment and providing certainty and training for staff.

“We want to invest in our workers and train and retain them for as long as we possibly can – we see this as a really positive move.”

Lawyer Giri Sivaraman, a principal at Maurice Blackburn, sees things differently. He said “We’ve seen this in Pizza Hut, we’ve seen this in 7-Eleven, now we’re seeing Domino’s where 14 year olds are being brought into a room and told, “You have to sign this contract,”. It’s really of concern.”

Sivaraman said the behaviour was “highly inappropriate”.

At competitor fast food chain Pizza Hut franchisees are coming under fire for using fake contracts to pay delivery drivers under the award wage  and offer no superannuation or WorkCover.

According to Fairfax Media, delivery drivers may be receiving as little as $12 an hour – the current hourly rate for delivery drivers is $20.35 for full timers, or $25.44 for casual staff.

Some franchisees within the Pizza Hut network are believed to be using contracts that require the driver to supply the car and pay the costs of fuel, insurance and vehicle maintenance.

A spokeswoman said this was out of step with Pizza Hut’s business practices.

“Pizza Hut with its franchisees have negotiated a national enterprise agreement with the Shop, Distributive and Allied Employees Association which includes rates of pay for drivers and team members.”

Court appeal

In a flashback to a case in 2009 the High Court has unanimously upheld an appeal from the Fair Work Ombudsman on a sham contracting issue at a Quest accommodation venue.

The High Court has ruled that Quest South Perth Holdings Ptd Ltd, which formerly operated the Quest on Arlington Serviced Apartments breached sham contracting laws when it attempted to convert three employees into independent contractors six years ago.

Fair Work Ombudsman Natalie James said the ruling increases legal protection for employees.

“The High Court’s  decision offers greater protections in situations where employers attempt to avoid responsibility for providing employees’ lawful minimum wages and entitlements by claiming employees are independent contractors.”