Amid the furore over the Fair Work Commission decision to reduce penalty rates, the Federal Government introduced a bill into Parliament that will force franchisors to ensure their franchisees are meeting their obligations under workplace laws.

Arguably the legislation, if supported by a majority of members of the Senate, will also ensure franchisors achieve a better understanding of the pressures on their franchisees and the viability of businesses within their networks.

The legislation follows a series of revelations about breaches of workplace laws in large well-known and industry-feted franchise, systems such as 7-Eleven, Caltex, Pizza Hut and Domino’s Pizza.

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