Domino's loses class action as court rules world's biggest pizza chain underpaid thousands of staff

The world's largest pizza chain has been found to have misled Australian franchisees by directing them to underpay thousands of staff following a long-running class action.

Federal Court Justice Bernard Murphy on Wednesday ruled Domino's had engaged in misleading or deceptive conduct in representations about staff wages to its Australian franchisees.

The fast food giant could be on the hook to pay thousands of low-paid Domino's franchisee workers significant compensation following the judgment.

The class action was brought in 2019 by Riley Gall, a former Queensland delivery driver who claimed Domino's underpaid him over five years by telling franchise operators to pay staff under the wrong workplace instrument.

He was seeking more than $10,000 in underpaid wages and entitlements, from June 2013 to January 2018.

The class action covered delivery drivers and in-store workers employed by Domino's Australian franchisees.

The court found Domino's instructed its Australian franchisees to pay delivery drivers and in-store workers under enterprise bargaining agreements when some employees were covered under the Fast Food Industry Award that has better terms and conditions.

'As a result, the true industrial position was that the award rather than the agreements applied to the employment of the applicant and a substantial cohort of delivery drivers and in-store workers employed by franchise operators during the relevant period,' Justice Murphy found.

'Domino's conduct which conveyed the alleged representations of fact was therefore misleading or deceptive conduct or conduct that was likely to mislead or deceive.'

Mr Gall said the win marked justice for thousands of others who were exploited and not paid the amount that they deserved under the correct award.

'I started work at Domino's as a delivery driver when I was 17 and stayed for three years,' he said.

'I had a young child at the time and things were a struggle. I was shocked to discover that I was underpaid by thousands of dollars.

'This has been a long-awaited decision and a relief that the court recognised the injustice towards workers who have been short-changed for years.'

Phi Finney McDonald principal lawyer Brett Spiegel said the judgment gave Domino's franchise employees the 'justice they deserve'.

'Employees at Domino's franchises have waited a long time to be compensated for underpayment,' he said.

'This systematic underpayment over a five-year period is not only unlawful, but also not a viable or legal business model.'

A Domino's spokesperson told AAP it' was reviewing the 560-page judgment. 

'Domino's notes that the Federal Court handed down its decision today, after the matter was heard in 2022,' the spokesperson said. 

'(It's) reviewing to assess its position including any grounds of appeal that may be available, and effect on the company.'