Federal Parliament recently passed the Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 (The PVW Act).

The PVW Act introduces a number of changes to workplace laws, including provisions that will make certain franchisors and holding companies responsible for underpayments by their franchisees where they knew, or reasonably should have known, about the contraventions and did not take reasonable steps to prevent them.  These new franchisor liability provisions came into effect on 27 October 2017.

The Fair Work Ombudsman has released guidance materials to help the franchise sector understand these changes, as well as a Franchisor Liability fact sheet to explain the changes in more detail and to help franchisors understand and comply with the new laws.

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