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  • Domino’s has been hit with a class action law suit accused of underpaying in-store workers and delivery drivers for almost five years
  • In-store workers and delivery drivers employed between 24 June 2013 and 24 January 2018 allegedly missed out on legal entitlements under the Fast Food Industry Award 2010
  • The company says it believes the pay and conditions of franchise employees should have been, and were, determined by reference to a series of industrial agreements rather than the Award in question
  • Domino’s shares are down nearly 2 per cent today, trading for $38.38 each at 11:43pm AEST

Domino’s has been hit with a class action law suit accused of underpaying workers for almost five years.

It’s been a rocky start to the day for the pizza giant after class action specialist law firm Phi Finney McDonald took action against Domino’s on behalf of in-store workers and delivery drivers across the franchise.

Phi Finney McDonald is alleging that Domino’s failed to pay key entitlements to workers employed between 24 June 2013 and 24 January 2018. Had the employees been paid under the correct Fast Food Industry Award, the law firm says, they would have received entitlements including 25 per cent loading bonus for casual workers, weekend and public holiday penalty rates, and laundry allowances.

Domino’s, however, is accused of instructing the majority of its Australian franchisees to pay workers under different “inapplicable” employment agreements. The class action demands that eligible workers be paid the difference between actual wages paid and the wages that should have been paid under the correct Award.

Domino’s released a statement today in response to the allegations, saying it has currently not been served with any claim or received prior contact about the allegations. The company believes the pay and conditions of franchise employees should have been, and were, determined by reference to a series of industrial agreements rather than the Award in question.

“Domino’s takes the proper payment of its team members seriously,” the company said. “Any formal proceedings received will be reviewed and actioned in the ordinary course.”

Therium Capital Management is funding the class action in return for a slice of any successful payouts. Essentially, this just means that any eligible employees wanting in on the class action will pay nothing for the duration of the legal battle, but Therium will pocket a portion of payments which may be received by workers should Domino’s be found guilty.

Domino’s shares are down nearly 2 per cent today, trading for $38.38 each at 11:43pm AEST compared to yesterday’s close of $39.13 a piece.

UPDATE: 3pm AEST, 25 June 2019

Domino’s management has released a statement to the ASX confirming it has officially been served with the class action.

The company says it plans to defend the proceeding.

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