June 27, 2019 / 11:43 PM / a year ago

Australia's Domino's Pizza rejects workers' allegations over underpaid wages

FILE PHOTO: A Domino's Pizza restaurant is seen in Los Angeles, California, U.S. July 18, 2018. REUTERS/Lucy Nicholson

(Reuters) - Australia’s Domino’s Pizza Enterprises Ltd (DMP.AX) said on Friday it did not mislead franchisees over payments to their employees and that it had not formally received court documents about a class action from workers over underpayment of wages.

It reiterated that it would defend itself against the class action, although it said the lead applicant had not made any claim against his franchisee employer and no franchisee employer was party to the action.

Instead, employees are seeking compensation against Domino’s for alleged underpayment by franchisee employers.

The suit, filed by law firm Phi Finney McDonald in the Federal Court of Australia, alleges that Domino’s misled franchisees by telling them not to pay delivery drivers and in-store workers according to minimum standards.

Fast food employees are entitled to a minimum weekly wage of A$813.60 ($565.86), according to requirements set by the Australian Fair Work Commission.

The Australia-listed Domino’s, which is the largest franchisee of the Domino’s Pizza (DPZ.N) brand outside the United States, operates in seven countries with over 2,000 stores.

The class action was filed on behalf of Australian employees who were employed as delivery drivers or in-store workers between June 24, 2013 and Jan. 24, 2018, Phi Finney McDonald said.

Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Paul Tait and Stephen Coates

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