Domino’s Weighs Appeal After Australian Court Rules Workers Were Misled on Pay

Domino’s Pizza Enterprises is considering an appeal after Australia’s Federal Court ruled that the company made misleading representations regarding the application of certain enterprise agreements, a decision that could have broader implications for employee wage claims.

The case was brought by a former Domino’s worker acting as the lead applicant in a class action representing franchise employees who worked as delivery drivers and in-store staff between June 2013 and January 2018. The workers argued they were underpaid because they should have been covered by the Fast Food Industry Award 2010 rather than enterprise agreements that Domino’s had advised applied across both corporate-owned and franchised stores.

In its ruling, the Federal Court found that Domino’s historical statements about the application of specific enterprise agreements were misleading. The court also determined that the coverage clause in a 2005 enterprise agreement was invalid, strengthening the workers’ claims that the incorrect pay framework had been applied.

As part of the decision, the court awarded the lead applicant approximately A$11,869 (about $8,326), plus interest, after concluding that Domino’s conduct resulted in financial loss through underpayment.

Domino’s said it is reviewing the judgment and assessing potential grounds for an appeal. The company also noted that any broader financial impact from claims involving other members of the group remains highly uncertain and cannot yet be quantified.

The ruling marks a significant development in Australia’s employment law landscape, particularly for businesses using enterprise agreements across franchise networks. Legal experts will be closely watching whether Domino’s proceeds with an appeal and how the decision could affect future wage underpayment claims involving franchise employees and enterprise agreement compliance.