Michaelia Cash (WA, Liberal Party, Minister for Women) Share this | Hansard source

The government opposes the Greens amendments outlined in item (1), which would extend the bill to cover related bodies corporate and remove the control test in proposed paragraph 557A(2)(b). This amendment would extend the coverage of franchisor obligations to also include related bodies corporate of the franchisor. This amendment would potentially capture all kinds of arrangements that have only a loose connection with a franchise business—for example, a subsidiary of a franchisor operating an entirely unrelated business. The proposed amendment fails to target those with a responsibility to identify and rectify underpayments. It ignores that businesses in the best position to address noncompliance with workplace laws are those with control and influence over the affairs of the underpaying entity. For that reason, the government opposes the amendment.

In relation to the amendments outlined in items (2) and (3), which impose joint employer responsibilities on franchisors and franchisees—so in practice both would actually have the same employment obligations—this amendment would allow franchisee employees who are underpaid to demand that the franchisor rectify the underpayment. The amendments impose a presumption of guilt on franchisors and could simply incentivise struggling franchisees to underpay workers and pass the buck to the franchisor. This is obviously bad for workers, bad for business and bad for jobs. The government does not support imposing direct liability on franchisors for their franchisees' wages bill. Franchisors that take reasonable steps to prevent contraventions of workplace laws should not be subject to further regulation. On that basis, the government will also be opposing those particular amendments.