Clarifying Employer Rules for Franchise Businesses
This Act aims to clarify when a large company (franchisor) can be considered jointly responsible for the employees of a local franchise (franchisee). These changes are designed to protect the independence of franchisees by specifying that a franchisor is a joint employer only if it directly and substantially controls key employment terms, such as wages or working hours. For citizens, this means clearer rules for employer responsibility in franchise employment relationships.
Key points
Increased Independence for Franchise Owners: Franchisees gain more certainty that they will be considered the sole employers of their staff, potentially simplifying management and reducing legal risks from the franchisor.
Clearer Rules for Employee Responsibility: The Act specifies that a franchisor is jointly responsible for employees only if it actually and directly determines their wages, work hours, hiring, or firing.
Potential Impact on Employees: Franchise employees might have fewer avenues to pursue claims against large franchise corporations if these corporations do not exercise direct control over their employment terms, potentially directing them to the local franchisee.
Introduced
Citizen Poll