The recent federal ruling on McDonald’s turned franchising upside down

federal ruling on McDonald’s

 

McDonald’s is held as the joint employer of workers at its franchise locations.

 
The National Labour body in US says McDonald’s is the joint employer of franchise workers. This means McDonald’s is held as the joint employer of workers at its franchise locations.  Traditionally,  franchise owners are considered sole employers of their workers because they operate as separate legal entity and franchisors were isolated from any labour disputes .If franchisors are considered joint employers, franchise owners face a number of questions that could have an impact on their businesses.
 
Too premature for initiating discussion but it does bring out a point that franchisor, in spirit, should take some responsibility in terms of training, working and benefits for people working in its franchised store.  The agreement with franchisee may ensure that these employees are at par with counterparts in corporate store.

  • Araceli

    Hi: Could you pls advise me where will this law be enforced? I am preparing my ph thesis on franchises. I live in Mexico City. Would appeciate your reply at my email address.

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