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More 7-Eleven operators fined for underpaying workers

PASADENA CA/USA – OCTOBER 25 2014: 7-Eleven store exterior and sign. 7-Eleven is the world’s largest operator and franchisor of convenience stores with more than 50000 outlets.

7-elevenMore 7-Eleven franchisees have been penalised for underpaying overseas workers.

The federal circuit court has penalised husband-and-wife Haiyao Xu and Yiran Gu $20,000 each, and their company Hiyi Pty Ltd a further $110,000. The couple previously ran a 7-Eleven store at Parkville, in suburban Melbourne. They now operate another in the CBD.

The Fair Work Ombudsman took legal action against the franchisees in relation to underpayment of workers at the Parkville store.

Twelve employees at Parkville were underpaid a total of $84,047 between September 2013 and September 2014. These amounts have now been back-paid in full. The Agency has entered into an Enforceable Undertaking (EU) with Xu and Gu and their company in relation to underpayments at their City store.

Following negotiations with the Fair Work Ombudsman, 11 employees who worked for Hiyi Pty Ltd at the City store are progressively being back-paid.

At Hiyi’s city store, employees were short-changed a total of $106,189 between June, 2013 and August, 2015.

Almost all are overseas workers, including international students.

Fair Work Ombudsman Natalie James said an EU was implemented for the contraventions at the City store given the company’s willingness to back-pay employees and overhaul its workplace practices.

The enforcement outcomes follow a series of actions by the Fair Work Ombudsman aimed at solving systemic non-compliance it has identified within the 7-Eleven network.

The Fair Work Ombudsman has commenced legal action against eight 7-Eleven franchisees since July, 2009. Three are still to be finalised.

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