Report: Pizza Hut delivery wage contract a 'sham'

A legal expert has labeled a Pizza Hut delivery driver payment contract as a “sham”.

Fairfax Media reports that delivery drivers can earn as little as $12 an hour and have to use their own vehicles for drop-offs as the chain engages in a price war with competitors including market leader Dominos.

According to the report, drivers can earn $6 a delivery with no more than two deliveries per round trip while paying for their own expenses including fuel and insurance.

One employee, who wished to remain anonymous, reportedly said he was offered $8 an hour, plus $4 per delivery as a compromise to a $6 per delivery contract.

Maurice Blackburn principal Josh Bornstein has been critical of a contract reportedly provided to him for review by Fairfax.

"Is this driver an independent business person in the business of delivering pizzas? In my view absolutely not," Mr Bornstein said.

"He is employed to deliver the company's product as and when directed. He is not genuinely running a pizza delivery business. In other words, in my view, the contract is a sham."

Pizza Hut is currently fighting franchisees, which have launched a class action against head office in Federal Court. The action is over alleged ‘unconscionable conduct’ under the franchising code.

The report comes after a 7-Eleven investigation that revealed systematic exploitation of underpaid workers.

News break – November 20