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Tuesday, September 1, 2026

How can businesses prevent rogue franchisees from breaking employment law? - People Management

After a Papa Johns manager was unfairly dismissed for insisting on being paid legally, People Management looks at what HR can do to avert franchise risks

5 August 2026

Many household brands, including McDonald’s, KFC and Papa Johns, operate through franchise models, with individual outlets independently owned and responsible for recruitment, pay, tax compliance and employment practices.

While this allows companies to expand rapidly, it can also expose workers to unlawful treatment and damage the wider brand when franchisees fail to comply with employment law.

That issue came into focus when a manager at a Papa Johns branch won his unfair dismissal claim after insisting he be paid through the payroll rather than cash in hand.

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Ashwani Kumar joined the Harlow franchise in February 2023, where he was offered 7.50 an hour to be paid cash in hand. He requested payslips instead and was aware that other workers were also being paid cash in hand, with some receiving less than the national minimum wage.

After returning from annual leave in January 2025, Kumar was told there was no work for him at the branch. He was offered work at another store if he accepted cash in hand payment, but was dismissed when he declined.

A spokesperson for Papa Johns said the company was aware of the tribunal’s findings and the...



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