Franchisors Now Liable for Franchisee Payroll Breaches — How NoahFace Helps Protect Your Network

A recent Australian Federal Court decision — Fair Work Ombudsman v Bakers Delight Holdings Ltd — confirmed that franchisors can be held liable for franchisee wage and record-keeping breaches under the Fair Work Act.

If a franchisee fails to maintain proper employee records, the franchisor may be presumed liable unless it can prove otherwise. The takeaway: franchisors must take “reasonable steps” to ensure network-wide compliance.

The New Reality for Franchisors

Manual timesheets, inconsistent systems, and incomplete records are now high-risk. When a franchisee underpays staff or lacks evidence of hours worked, the franchisor’s brand — and bottom line — are on the line.

To protect against this, franchisors need reliable systems that standardize data capture, ensure auditability, and provide transparent oversight across every location.

How NoahFace Helps Franchise Networks Stay Compliant

NoahFace transforms iPads or mobile devices into secure, intelligent time-and-attendance systems. It provides accurate, auditable records that simplify compliance for franchisees and franchisors alike.

1. Accurate, Tamper-Proof Time Records

Employees clock in/out using facial recognition or mobile devices. Every event is time-stamped and securely stored, eliminating paper logs and “buddy punching.”

2. Centralized Oversight Across Sites

Franchisors can view data across all franchise locations in real time, spotting compliance risks — such as missed breaks or overtime anomalies — before they escalate.

3. Audit-Ready Payroll Integration

NoahFace integrates with leading HR and payroll platforms like Workday, UKG, Employment Hero and SAP SuccessFactors, creating a complete, verifiable record of time worked and wages paid.

4. Enforced Breaks and Shift Rules

Configurable prompts ensure employees take required breaks and comply with award conditions, reducing accidental underpayments.

5. Documented Oversight for “Reasonable Steps” Defense

System logs, dashboards, and reports help franchisors prove they’ve actively monitored compliance — a crucial element in defending against Fair Work liability.

The Bottom Line

The Bakers Delight case raises the compliance stakes for franchisors. With NoahFace, franchise networks can standardize record-keeping, automate oversight, and demonstrate full compliance — protecting both franchisees and the brand.

Learn more about NoahFace Time & Attendance or Book a Demo to see how we can help your franchise stay compliant and audit-ready.

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