Fair Work Ombudsman

Franchising Update: Franchisor liable for Franchisee non payments of employee entitlements - Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd

Franchising Update: Franchisor liable for Franchisee non payments of employee entitlements - Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd

On 4 June 2024 the Federal Court of Australia handed down the decision of Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd [2024] FCA. This decision resulted in the Fair Work Ombudsman penalising the Australian franchisor of the 85 Degrees brand $1.44 million for its “systemic failure to ensure compliance within its franchise network” which included underpayments at several of their Sydney franchisee outlets.