RED Rooster is the third major fast-food chain to sign up to a national audit designed to ensure that staff at its franchise stores are being paid properly.
It has followed a lead set by McDonald's and Domino's.
Red Rooster Foods Pty Ltd and its franchisees, in collaboration with the Fair Work Ombudsman, have agreed to self-audit employment records to ensure that 2500 staff working for franchise outlets are paid correctly, and to correct any issues they may find.
Together, Red Rooster Foods and its 250 franchised stores employ more than 7500 people.
Fair Work Ombudsman Nicholas Wilson today welcomed the company's decision to sign a Pro-Active Compliance Deed.
"We congratulate Red Rooster and its franchisees for showing corporate responsibility to the thousands of young and casual workers on their payroll," he said.
When McDonald's became the first to sign a Pro-Active Compliance Deed in mid-2011, Mr Wilson said then that the initiative was a terrific model for other companies, large and small, to follow.
Domino's has since followed suit.
Under the latest Deed, posted on the Fair Work Ombudsman's website, Red Rooster has agreed to audit a sample of employment records between January 1, 2010 and December 31, 2011.
The process, which will include both metropolitan and regional Red Rooster outlets, is expected to take until the end of August, 2012, after which Red Rooster Foods will provide a report on its findings to the Fair Work Ombudsman.
Red Rooster is undertaking the task voluntarily and will work with franchisees to immediately correct any underpayments it might discover.
The Deed follows complaints to the Fair Work Ombudsman from employees of franchise stores about underpayment of wages.
Employees at franchise stores have been advised of the program and invited to contact a workplace relations email account set up by the company should they believe they are being underpaid wages or entitlements.
Under the Deed, Red Rooster acknowledges there are opportunities for continuous improvement in relation to its workplace practices and accepts responsibility for developing systems and processes to maintain ongoing compliance with Commonwealth workplace laws.
The Fair Work Ombudsman provides advice and assistance via its website - www.fairwork.gov.au - and its national Infoline 13 13 94.
The Agency's National Employer Branch also provides assistance to major employers and franchisors.