Caltex, however, has established a $20 million Assistance Fund, which allows franchise employees to demand underpayments as early as 2015. “Caltex will attempt to recover the costs of its fund from franchisees responsible for underpaying their employees` rights,” Caltex said. If Caltex franchisees are “abandoned,” the company will also invite employees to come forward if they feel they have been underpaid. Caltex has terminated contracts with 19 franchisees covering 43 sites to underpay employee rights and other significant workplace non-compliance issues. Caltex says, “Responsible franchisees are responsible for any underpayment.” Caltex reviewed approximately 130 of its 1,900 retail sites. According to a report against a franchisee in 2015, who found evidence of significant defects and compliance. Some 600 Caltex sites are operated by franchisees. Read more About Fines and Sanctions: Fair Work Act 2009 | Recent lawsuits already a subscriber? Call or log in to access the HR tools and advice you need to work successfully. Not a subscriber yet? Contact our friendly team to find out how we can help you and your business. The discovery of significant sub-payments and compliance failures by Caltex franchisors comes at the same time as the Turnbull government has legislation before the Federal Parliament to extend responsibility for deliberate and serious subpayments to franchisors and holding companies and increase penalties for infringements to 10X (up to $540,000) as a result of 7-E-E-Elev`s problems , Pizzalev and other franchises.