The franchise business model can provide great opportunity for entrepreneurs interested in building off an established brand as well as for established restaurants looking to expand. However, various government agencies and courts have grappled with how to treat the employment relationship between a franchisor and its franchisee’s employees.
What is “Joint Employment” and Why Does It Matter?
As implied by the name, joint employment exists when two or more entities act as the employee’s employer for a single job. An example of joint employment To illustrate the relationship, let’s say a franchisor, W·C·M Restaurant Group, seeks to maintain its reputation and uniformity among its franchisees, like W·C·M Eats, by directing or controlling the franchisee’s employment-related policies and decisions. Under some circumstances, W·C·M Restaurant Group and W·C·M Eats may be considered joint employers.
To read the full article, please visit WCR.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.