Franchisees in the Domino’s Pizza chain could find themselves paying higher labour costs after the Fair Work Commission terminated deals with workers under which they were paid less than minimum award rates.

The ruling by the Fair Work Commission to terminate 27 expired, existing enterprise agreements by January 24 could add significantly to Domino’s wages costs.

The Shop, Distributive and Allied Employees Association (SDA) said it had long held concerns about the pay and conditions of Domino’s workers, especially Sunday penalty rates.

Domino’s said it had not opposed the termination of the enterprise agreements, and had requested and been granted time to transition to a new agreement that is currently being negotiated.

“Negotiations with the relevant parties for a new EBA are well advanced, and the intention is for it to take effect before the termination of the existing EBAs,” Domino’s said in a statement yesterday.

“Over the past 18 months, Domino’s has already increased our team members’ take-home pay in good faith in anticipation of the new EBA.”

Domino’s Pizza has seen a sharp drop in its shares following the Fair Work Commission’s action.