Domino’s Pizza has been hit with 17 formal cautions by the Fair Work Ombudsman after it was found to be underpaying employees. Only four of 23 stores it has finished investigating were fully compliant with workplace law.

Among the 19 stores in breach, problems included non-payment for hours worked, delivery allowance and leave entitlements, unauthorised deductions, and record-keeping breaches.

The ombudsman says Domino’s, which had already returned millions of dollars in underpaid wages and superannuation following its own audit, has been put on notice that future non-compliance could result in financial penalties.

Fair Work Ombudsman Sandra Parker said the results highlighted systemic issues within the Domino’s network.

“We expect better from a major network like Domino’s – it should not be up to the Fair Work Ombudsman to find and alert businesses to the systemic issues identified.”

Parker said that franchisors could now be held liable for breaches of workplace laws by businesses in their networks, due to recent legislative changes.

“It is in head office’s best interests to set clear expectations with their stores, provide them with comprehensive training and support and regularly check that workplace laws are complied with,” Parker said.

The audits found a large number of vulnerable employees working at Domino’s stores. Of employees whose details were provided, 72% were under 25 years of age and 48% were visa holders.

It also found 65% of franchisees audited were from non-English speaking backgrounds and possessed minimal knowledge or experience of Australian workplace laws.

Young workers and visa holders are particularly vulnerable to workplace exploitation due to a lack of awareness of workplace rights and a reluctance to seek help.

“The Fair Work Ombudsman will continue to closely monitor Domino’s across its network by responding to requests for assistance and assessing any intelligence we receive,” Parker said.