The Full Court of the Federal Court’s decision in Bakers Delight Holdings Ltd v Fair Work Ombudsman [2025] FCAFC 144 provides insight into the interaction between franchisor liability and ‘reverse onus’ mechanisms in the Fair Work Act 2009 (Cth).

Specifically, the Federal Court confirmed that franchisors can be held legally responsible for workplace contraventions by franchisees, even where the case against the franchisee relies on a ‘reverse onus of proof’. Franchisors are recommended to implement proactive compliance systems across their networks to avoid liability.