Australia has introduced a new national minimum wage. As of 1st July 2017, the national minimum wage increased to $18.29 per hour or $694.90 per week. This represents an increase of 3.3 per cent. Fair Work Ombudsman Natalie James advised employers to check their compliancy with the new rates.
“It is important that employers act immediately to pass on the new wage rates to their employees from the first pay period after 1 July and ensure that their workers are receiving their lawful entitlements,” Ms James said.
This will have a knock-on effect on businesses franchising in Australia. Gemma Tumelty of The HR Dept said: “Franchise systems, such as food or retail franchises, which rely mainly on minimum wage workers will be impacted by this rise. It’s intended to help low-income workers earn a living wage but some franchisees, who can be hamstrung by royalty fees, advertising costs and forced participation in national promotions, say it could force them to cut jobs and reduce hours.
“Freedom to increase prices is not a given in all franchise systems, so franchisees often have limited ways of ensuring their businesses survive. Not paying it is not an option. As well as being the moral thing to do, the costs of getting it wrong far outweigh the costs to the business of a minimum wage hike.”
