7-Eleven workers ‘hand cash back’

7-elevenWorkers at convenience store chain 7-Eleven say they have to hand back up to half of their pay to their bosses in cash after being paid the full award rate.

Hidden footage broadcast on the ABC on Monday shows employees at a Brisbane 7-Eleven being forced to hand back their pay.

One of the workers says she was initially paid the full award rate of $25 then told to hand back $11 per hour to her boss in cash, known in the industry as a “cash back” scheme.

“My bosses say they can’t afford to pay the government rate,” a worker said.

“That’s why they ask us to give some of the money back.”

Last year, a Fairfax-ABC investigation revealed some franchisees systematically underpaid international students, who were threatened with deportation if they reported it.

It prompted the company to set up an independent panel to review the claims, but later got rid of it for an internal “independent” panel within 7-Eleven.

7-Eleven sait is appalled by the allegations raised by the ABC regarding potential wage fraud at a Brisbane store, and called on the ABC to share any information it has to assist its investigation.

“There should be no doubt that we have zero tolerance of wage fraud,” said 7-Eleven’s CEO Angus McKay.

“We have aggressively investigated the claims since they were shared with us last week. If they are proven, we will act upon any illegal Franchisee activity, up to and including termination of their franchise agreement. Until they are proven or otherwise, it is unfair to jump to conclusions.”

“Our commitment to stamping out these practices within our franchised network of stores, and to repaying staff members found to have been disadvantaged, is absolute.”

Meanwhile, the embattled chain said it welcomed legal action taken against one its other Brisbane franchisees last week.

The Fair Work Ombudsman announced legal action against the operators of a 7-Eleven fuel outlet in East Brisbane,  for allegedly underpaying two employees – both international students from India aged in their mid-20s – a total of $5593 over a five-month period in 2014.

The company allegedly created false employment records when making false entries into the 7-Eleven head office payroll system.

The matter takes to nine the number of 7-Eleven operators the Fair Work Ombudsman has taken legal action against since 2009.

Earlier this year, the Fair Work Ombudsman secured record penalties of more than $400,000 in a legal action against one Brisbane 7-Eleven operator and also announced legal proceedings against the operators of three other 7-Eleven outlets in Brisbane:

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