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franchisor WINS ACC BATTLE
by Simon Lord, last updated on 8th December 2011
The ACC has failed in an appeal over the status of franchisor support office staff in a case which means that some franchisors may be able to make considerable savings on ACC levies
The original case arose when a franchisor challenged the ACC decision to apply the same classification to support office staff as it applied to franchisees, who were in a more expensive classification. The franchisor argued that this was totally inappropriate, given that the support office staff were solely administrative.
The dispute was taken to an ACC review with a mediator, at which the Franchise Association gave evidence. This resulted in a win for the franchisor but ACC appealed against the findings of the mediator in the District Court. The Association then collected examples from other franchises and the appeal was not upheld. ACC has now accepted that the correct classification for support office staff – provided they are not involved in actual work other than training – is Corporate Head Office Services. The rate for this classification is 0.29c per $100, which is a significant saving for the franchisor who was previously paying $1.75 per $100.
The Association is happy to put members who have similar problems in contact with the advisors to the member in this case.
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