“Compliance in a network is an investment, not a cost” says FWO

Brands that have invested in compliance have found this to be a small price to pay in comparison with negative brand coverage, market cap deterioration and a whole host of legal and accounting problems with franchisees down the track,” said the Fair Work Ombudsman, Ms Natalie James in a speech yesterday.

A detailed media release made available from the FWO stressed the need for all franchisors to demonstrate that they have taken “reasonable steps” to prevent underpayments and other contraventions of employment obligations if they are to avoid liability and brand damage. Included in this release was the launch of the “Guide to promoting workplace compliance in your franchise network” – a 20 page document that provides specific detail concerning the actions that franchisors must take following the introduction of the Fair Work (Protecting Vulnerable Workers) Act 2017. One fact is clearly evident – the game has well and truly changed for the franchise industry and businesses must ensure that they are aware of their obligations and responsibilities in the new regulatory environment if they wish to safeguard their future.

FCB Group, parent company of HR Assured, would strongly advise all franchisors to read this document and familiarise themselves with the expectations now placed upon them. Rod Marshall, Partner and leader of FCB’s Franchise team, is available to discuss compliance strategies and options available to franchises and can be reached at rwm@fcbgroup.com.au on 02 9922 5188 . If you are interested in attending the next FCB Franchise Focus Group please email Alistair McDonald, Head of Business Development – Professional Services, at asm@fcbgroup.com.au.

HR Assured has a proven track record in assisting franchise networks to ensure compliance and we work with some of the largest franchise networks in Australia. Contact us to find out more.