Domino’s Hits Australian Customers with 10% Surcharge—But Only on Sundays

The fee will help pay “penalty rates,” leading to higher wages for employees, the company says.




As Domino’s Pizza adds more jobs in Australia, the company is also trying to meet the country’s required “penalty rate” for employees who work on Sundays.

 

A 10 percent surcharge will be tacked onto all Domino’s pizza orders delivered on Sundays in Australia, the company announced.

The Sydney Morning Herald reports that the surcharge will be used to pay Domino’s employees an extra 25 percent for working on Sundays, part of the so-called “penalty rate” under Australian labor law. The pizza giant is trying to bring its pay rates in line with the rest of the industry and found this was a strategy that customers and franchisees could both agree on.

Domino’s Pizza Enterprises reported record annual sales last year in the Land Down Under and saw a 15.5 percent boost in same-store sales. The company went on a hiring spree last September, adding 2,500 workers and beefing up each store’s staff by an average of five people.

Domino’s has been working on a plan to establish penalty rates—a type of overtime pay based on when employees are required to work, but not how many hours are worked in a week—for more than a year. “We value our employees and believe this voluntary increase is an important step in rewarding them for their commitment to our business and our customers,” the company said in a statement. “We are confident we will be able to finalise this process and flourish.”

 

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