The essay revolves around the industrial relationship, which includes the employment and franchise relationship. It has been identified that presently there is a marketing tension between the federal government as well as the State government regarding the regulations of the industrial relationship. Moreover, the reform in the Federal Industrial relation system makes it more complicated for the organizations. Some of the large organizations have been observed to be facing some serious issues with employees. In order to understand the issues associated with the industrial relationship, the current essay focuses on the scenario occurred in 7-Eleven Australia. According the report, the organization was in trouble with the employment relationship (ABC News, 2016). Some claim that organization did not implement the regulations mentioned by the federal government. However, the organization provides the evidences that demonstrate that franchises allegedly falsifying the statement and creating trouble for the organization. Thus, the essay provides an insight about the scenario took place 7-Eleven through intensive analysis. The purpose of the report is gain the insight regarding how the regulations related to the industrial relationship the influence the organizations and the employees.
According to the Fair Work Ombudsman and its agencies many thing went wrong with the compliance of federal government of Australia caused by the alleged actions implemented by 7-Eleven, Australia (ABC News, 2016). The report reveals that for many years, the employees of 7-Eleven have been allegedly reporting that organization did not implement the faire wage policy. The employees of the organization claim that there is a significant underpayment wages maintained by 7-Elevan, Australia. On the contrary, there has also been increasing evidences that the underpayments were related to the false employment records generated by the franchisees. After the formulation of Faire Work Ombudsman in July 2009, the agency has emphasized on eight different matters including 7-Elevan franchisees (Fair Work Ombudsman, 2016). There have been other evidences that demonstrate that an Enforceable raised the issues regarding the non-compliances with the regulations. The investigation conducted on this particular issue helps to learn in the year 2012; 7-Elevan was invited to take part in a pilot program to guide the franchisees identifying the compliance. In addition, in 2012, 7-Elevan was also observed to be the “Franchise of the year”. The investigation further derives the outcome, which implies that 7-Elevan showed its interest. In such situation, the Franchises were not new and recent migrants could be unaware of the workplace obligation. Nonetheless, in spite of the assurance of commitment that franchises receive the adequate guidance on their obligation, the organization 7-Elevan denied to take part in the franchisee program. In addition to all these, it has also been that the Fair Work Ombudsman had the engagement with 7-Elevan. The purpose of this engagement was to observe the enhancement in compliance.
Furthermore, it has also been observed that based on the continuous concern as well as the intelligence, a strategic inquiry has been conducted to identify the issues occurred in 7-Elevan. An assessment of 20 stores was conducted, which provide the some opportunities to find out the major cause of non-compliance. Based on the inquiry, further solutions to resolve the problem was supposed to be conducted. Moreover, The Fair Work Ombudsman has raised the issue to support the franchisees by suggesting the advice. However, it is not the responsibility of Work Ombudsman to build the compliance as well as monitor the work framework for the franchisees. The Fair Work Ombudsman has been in the discussion with Australian Competition and Consumer Commission to resolve the issues. The Fair Work Ombudsman also issues two different media statement to expose publicly the status of its work that time. In fact, the issue was also raised the court and other details of the Enforceable Undertaking. Two significant concerned raised by 7-Elevan took the place in the discussion. However, the organization 7-Elevan had to deal at the court regarding the underpayment wages. On the contrary, the franchise of 7-Elevan provide the doctoring evidences and supported the underpaying workers to cut down the operating cost. One of the 7-Elevan store in Melbourne has internally accepted short-changing its employees by ten thousands of dollars as well as the doctoring its employment records to minimize the cost (Lessons from 7-Eleven’s scam,2016). Furthermore, in order to prolong the investigation, The new investigations come as the federal government has vowed to crack down on wage fraud across the $170 billion franchise industry, including 7-Eleven, with new legislation set to be drafted and introduced into Parliament.
The Faire Work Ombudsman has made an unrevealed site visit to the store of 7-Elevan to further notice the relevant points regarding the issues (Lessons from 7-Eleven’s scam, 2016). The inquiry also indicates that due the level of control exerted over the franchisees by 7-Elevan provides a little scope to influence the profitability in the franchise model. Moreover, there is an evidence of acceptance of a “going rate” for working with the organization 7-Elevan. The rate wage was the below the minimal lawful wage. Thus, the organization has to deal with some particular issues and this was considered as the major challenge for the organization. The workers at 7-Elevan have publicly stated that there was culture of acceptance; this indicates that working at 7-Elevan, the workers have to receive the lower payment and accept the conditions that is lawful. The set of conditions helps to learn that employees were put under the circumstance that if they continue working at 7-Elevan that they have to comply with the conditions developed by the organization considering the laws.
There have been certain failures and the gaps existed in the industrial relationship that enables the organization to make people work at the low rate. Firstly, 7-Elevan followed the regulations mentioned in the laws although the employees do not accept those. However, the intensive investigation helps to know that most of the employees have changed their responses. The inquiry lacks the cooperation of the employees. Most of the workers did not take part in the investigation. Some of the employees have claimed that 7-Elevan was highly aware of the high non-compliance across its network. However, no employee has been able to provide appropriate evidences to support the claim. Secondly, the organizations have to maintain the rules and regulations of their corporation with the law regarding the industrial relations system in the country, which was not followed by the company as well. In this case, the company has formed their rules and regulations to dominate the employees in the company. They have implemented the rules that the workers cannot protest the wage deduction while they have signed the contract on other rules. However, the law of the country has strictly mentioned that the organisation a have tp implement the rules and regulations for their company matching with the laws and regulations announced in the Act.
According to the system of Australian National Workplace Relations System, the workers have the protection of a set of rules and regulations that the organisations have to follow. Therefore, the company in this case has breached the Fair Work Act 2009, which is covering the majority section of the private companies in Australia. Thirdly, the government has enforced the commissions for helping the workers in the time when they face any problems in the organisation regarding wages, employee rights, or any safety related issues. The commission are there to solve their problems with providing the required security and safety according to the laws of the country. However, the company has not followed the rules and regulations of the commissions too in this case. Therefore, it was also an issue for them that the company has to face the fraud case of court. Moreover, lastly, it can be said that the company has faced the legal issues that the companies have to maintain the values of monies held by the commonwealth for the unpaid workers. Apart from all of these breaches of the rules and regulations of the relations of the industrial rules and regulations of the country it cannot be supported that the company was continuously depriving their workers and the workers was not able to say anything against them. These are the main issues that has found in the study, which have to be required change in a hurry manner.
The company can be recommended in the ways that it should have develop the knowledge about the country’s laws and regulation and then have to maintain an d follow it. However, in this company the workers have to be paid in the way they have signed the contract. However, 7 Eleven have to implement the ideas in their company not to deprive their employees in any cost. As the country law is supporting the workers therefore, they have to back the amount of money that they have taken from the other people. The law of the country in 2009 has explained this problem as a big issue to resolve and provide safeguard to the workers. Therefore, the company should have to follow the rules and laws of the country to avoid these kinds of legal problems. The government has taken the responsibility to resolve this problem and they have implemented the law and rule under the National Workplace Relations System. It was said that if the workers are deprived by any company, then they have to bear the compensation to give justice to the workers. According to the Fair Act 2009 the employees have the power to protest against the company that has broken the rules of the country.
Therefore, the company has to know the legal rules and regulations first not to misbehave with the workers as well as to implement proper rules within the organization. There was another issue that was revealed in the investigation about the company. It was like that the company was threatening their employees not to reveal the reality before anyone and also has threatened them about any protest. The workers were told by the company authorities that if they protest against the rules of the company, then they will be sacked from their posts and job. Therefore, the threat of losing the job has enforced them to be silent in this case. This has led the situation towards a very bad condition that was revealed by this inquiry. Apart from this, the inquiry has revealed that the franchises like 7 Eleven were exploiting the workers since long time and the government could not able to find out this issue. The franchises were showing the wages in the documents that they were paying their employees the wages they have promised at the time of contract. However, they were giving them the half amount of money and the employees were impelled to pay back the half money to the franchises. Therefore, the franchises should have to more concern about the terms and conditions of the law enforced in the country that they can continue their business without any hindrance. The company has exposed twelve months ago about this fraud case of wages of their workers, still they had not taken any positive step to avoid the legal punishment. They should have to aware of this issue before to avoid this situation, which had spoiled their reputation of the business before consumers and stakeholders.
The purpose of the study is to find out the exact reason for the scandal regarding the wages of the workers in the 7 Eleven company that was revealed in April by the Fair Work Ombudsman, who has found the misconduct between the papers submitted about the wages and actual amount of wages given to them. Therefore, the study has analyzed the actual issue, which has led the company towards this scandal. The laws and regulations of the country have explained in this context to analyze the flaws of the company done in this case and then in order to solve these problems some recommendations has done also or the company. Therefore, the 7 Eleven wages scandal has made the people aware about this kind of situation and the recommendations given in the last part has enabled them to understand the laws and regulations of the country regarding the industry relations to safeguard their professional and personal life.
7-Eleven cash-back scheme 'still alive and kicking', union claims. (2016). ABC News. Retrieved 10 September 2016, from
Lessons from 7-Eleven’s scam. (2016). Overland literary journal. Retrieved 10 September 2016, from
Welcome to the Fair Work Ombudsman website. (2016). Fair Work Ombudsman. Retrieved 10 September 2016, from