7-Eleven pay system ‘unusual’ for franchises

THE Franchising Council has called for bigger penalties for directors of companies caught exploiting workers.

After the revelations around 7-Eleven's exploitation of workers, the council also told a Senate committee inquiry 7-Eleven's payroll structures were "unusual".

The convenience store business was paying its workers centrally, rather than individual franchisees paying employees, and it was collectively collecting franchisees' receipts.

The council's general manager Kym De Britt said it was the only such franchisor he had heard of operating its payroll system in that way.

The council told the committee it believed penalties under the Fair Work Act for underpaying or over-working employees should be increased.