Domino’s franchisees fined for employment breaches

9 July 2018

Domino’s franchisees to pay more than $32,000 for employment breaches

Two companies, which operated as Domino’s pizza franchises in Auckland, have been penalised $32,400 for serious breaches of employment law, following a Labour Inspectorate investigation.

E Lynn Limited and E Ming Limited, operated by Mr Xi Chen, failed to provide their employees with correct employment agreements and to keep correct wage, time, holiday and leave records.

The businesses were based in Henderson and Te Atatu, and the breaches affected some 112 staff across both.

In addition to penalties, Mr Chen also paid his staff more than $54,000 in arrears, as calculated by Domino’s Pizza Enterprises.

Labour Inspectorate Retail Lead Loua Ward says, “It’s disappointing to see companies operating under established and international brands, failing to provide employees with their minimum rights.

“These businesses have highly systematic approaches to the production of their product. It’s quite unacceptable that they do not have a similarly systematic approach throughout their operations, to ensure compliance with minimum employment rights, for what can be very vulnerable workers.

“It’s simply not acceptable for businesses to ‘fix things up’ after the event. Businesses and their brands must have mechanisms in place to monitor and prevent employment standards breaches. It’s the ‘getting it right’ that counts.

“Businesses and their associates should know that the Labour Inspectorate will hold them fully and publicly to account for failing to comply with the law.

“There’s a reminder for consumers here too, and that’s to be mindful about whether your money is going into the right pocket. For a five dollar pizza, workers shouldn’t have to pay the price,” says Ms Ward.

There are a range of sources available to help employers meet their obligations, including the Employment New Zealand website, business.govt.nz’s Employment Agreement Builder, and the Ministry of Business, Innovation and Employment’s (MBIE) service centre.

Anyone concerned about their employment situation, or the situation of someone they know, should call 0800 20 90 20 where they can report their concerns in a safe environment.

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