7-Eleven franchisees' workers alleged to be caught in 'cash-back' scam

The scam is sweeping the country, with numerous workers discussing variations on the "cash scam" theme.

For instance, a permanent resident might pay back a smaller amount than a worker on a student visa who is only allowed to work 20 hours a week under the visa conditions.

As one store manager says: "Imagine working for $12 an hour and being taxed for $20 an hour or more. I didn't think they could get more odious but I was wrong."

Pranay Alawala, a former 7-Eleven worker in Brisbane who recently confronted his boss to pay back more than $40,000 to himself and a few other workers, said he had been contacted by many workers who have got caught up in the "cash scam".

Text messages between a franchisee and a 7-Eleven employee from a Brisbane store leave no doubt that this new fraud is widespread.

The new scam will be difficult to prove and could be an additional challenge for the independent panel that has been set up by 7-Eleven to investigate underpayment of wages.

The panel, headed by former ACCC chairman Allan Fels, a fierce critic of the 7-Eleven franchise model, will kick off this week.

Mr Fels hit the headlines a week ago when he said "the only way a franchisee can make a go of it in most cases is by underpaying wages, by illegal behaviour."

Workers are invited to come forward if they have been underpaid and the panel will assess their claims, but the success or otherwise of the panel will depend on whether they are given amnesty by the Abbott government and whether the onus is on the worker to prove their case, or the franchisee and 7-Eleven head office.