Petrol retailer Caltex Australia is setting up a $20 million assistance fund for franchisee employees who have not been paid their full entitlements by Caltex franchisees.
It will allow franchisee employees to claim underpayments for the period from 2015 onwards, and has invited former employees to come forward if they believe they may have been underpaid.
The fuel seller said it had initiated workplace audits that had found underpayments by some franchisees to workers.
"While Caltex has no liability to pay franchisee employment entitlements, the fund has been established because Caltex wants to do the right thing by franchisee employees," the company said in a statement.
Caltex says it has terminated franchise agreements with 19 franchisees over underpayment or other non-compliance with workplace audit requirements following a review.
The assistance fund will be available to employees of franchisees who are terminated or "exited" from the Caltex network.
Caltex said the employees had to make claims within three months of a franchisee exiting the network, while those who worked for franchisees already terminated have three months from May 31.
The company began reviewing its franchise network after Fairfax Media published allegations of underpayment of workers in the network in 2016.
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