Underpaid workers prevail in Domino’s class action

In a “landmark victory”, thousands of low-paid Domino’s franchisee workers could be entitled to significant compensation following the “long-awaited” ruling in class action proceedings.

In June 2019, and as previously reported by HR Leader’s sister brand, Lawyers Weekly, plaintiff law firm Phi Finney McDonald filed a class action against Domino’s, alleging systemic underpayment of thousands of delivery drivers and in-store workers employed across franchise outlets nationwide over a five-year period, caused by misleading and deceptive conduct.

The class covered delivery drivers and in-store workers employed by Domino’s Australian franchisees between 2013 and 2018.

Now, the Federal Court has ruled in favour of the workers, with Justice Bernard Murphy finding that Domino’s instructed its Australian franchisees to pay delivery drivers and in-store workers under enterprise bargaining agreements, when some employees were covered under the Fast Food Industry Award that has better terms and conditions.

His Honour found that the “Award rather than the Agreements applied to the employment of the applicant and a substantial cohort of Delivery Drivers and In-Store Workers employed by franchise operators during the relevant period”.

Consequently, the conduct of Domino’s in making the representations was “objectively wrong”, and “was therefore misleading or deceptive conduct or conduct which was likely to mislead or deceive, in contravention of s 18 of the [Australian Consumer Law]”, Justice Murphy said.

Lead plaintiff Riley Gall, a former Domino’s delivery driver in two Queensland franchisees from 2015 to 2018, said: “This isn’t just a win for me. It’s always been about justice for the thousands of others who were exploited and not paid the amount that they deserved under the correct award. Many of them will still be in those positions where the money will really help.”

“I started work at Domino’s as a delivery driver when I was 17 and stayed for three years, working in three stores in Queensland, two in North Caboolture, from 2015 to 2018. I had a young child at the time and things were a struggle. I was shocked to discover that I was underpaid by thousands of dollars,” he said.

“Had they paid the correct award rate, it would have made a meaningful difference to me at the time.”

“This has been a long-awaited decision and a relief that the court recognised the injustice towards workers who have been short-changed for years, Gall continued, noting that he hopes the outcome discourages Domino’s from making money by underpaying franchisee staff.

Brett Spiegel, principal lawyer at Phi Finny McDonald, said that Justice Murphy’s judgment is a “great result for underpaid workers”.

“It finally gives Domino’s franchise employees the justice they deserve. Employees at Domino’s franchises have waited a long time to be compensated for underpayment. This systematic underpayment over a five-year period is not only unlawful, but also not a viable or legal business model,” he said.

“Riley Gall has shown incredible courage and dedication in bringing this case and persevering over the more than six years to get to this day. This landmark victory highlights the harm widespread and systemic wages underpayment inflicts on a vulnerable labour force. And it’s a timely reminder for employers to pay their workers what they are owed under the applicable award or agreement.”

Retail and Fast Food Workers Union director of litigation strategy Josh Cullinan added that “when members explained how old rotten SDA deals were ripping them off at Domino’s Pizza, we knew something was off”.

“Our forensic investigation in 2018 exposed a system of exploitation perpetrated by a multi-billion-dollar franchisor on some of Australia’s lowest paid workers. We thank the tireless effort of Phi Finney McDonald Lawyers, backed by their funder Therium, who were prepared to fight for worker justice,” he said.

“Today, the Court has vindicated our campaign and set the record straight. We cannot wait for the stolen wages to be returned to workers. We couldn’t be prouder of our RAFFWU member, Riley Gall, who has led the class action to this stunning success.”

A further hearing is set to be held to decide group member claims.

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Jerome Doraisamy

Jerome Doraisamy is the managing editor of Momentum Media’s professional services suite, encompassing Lawyers Weekly, HR Leader, Accountants Daily, and Accounting Times. He has worked as a journalist and podcast host at Momentum Media since February 2018. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.