Domino’s Pizza Enterprises announced Thursday it is weighing its legal options after an Australian Federal Court ruled against the company, finding that it had made misleading claims regarding the pay agreements applied to its workers.
The case was originally filed by a former employee acting as the lead representative for a group of Domino’s franchisee workers — including delivery drivers and in-store staff — who were employed between June 2013 and January 2018.
On Wednesday, the Federal Court determined that the pizza chain’s past statements about the coverage of certain enterprise agreements were misleading. Specifically, the court ruled that a coverage clause contained in a 2005 enterprise agreement was invalid.
The workers at the center of the case argued they should have been compensated under the Fast Food Industry Award 2010, rather than under the enterprise agreements that Domino’s had told workers applied to both its corporate and franchised store locations.
After concluding that Domino’s conduct led to underpayment, the court calculated the lead applicant’s individual loss at approximately A$11,869 — equivalent to about $8,326 U.S. dollars — plus interest.
Domino’s acknowledged the ruling but said its potential liability to other workers in the group remains “highly uncertain and unquantifiable.” The company added that it is currently reviewing possible grounds on which to file an appeal.
