Can businesses overcome serious allegations from employees? McDonald’s case study

Back in 2023 the BBC revealed the results of their investigation into the culture at McDonald’s, one of the largest employers in the country who currently engage 168,000 people across 1,400 restaurants in the UK.

The BBC report of its investigation revealed that, of the more than 100 allegations from employees spoken to, 31 related to sexual assault and 78 to sexual harassment. There were also 18 allegations of racism and six of homophobia.

Despite further reports and Alistair Macrow (chairman of McDonald’s in the UK) having previously told MPs the firm was taking action to improve working conditions, more than 700 current and former junior employees are taking legal action against the firm, accusing it of failing to protect them.

In February 2025, Liam Byrne, the chair of the business and trade select committee, asked Mr Macrow if McDonald’s had ‘basically now become a predator’s paradise’.

Recent developments in harassment and discrimination laws

McDonald’s works based on a franchise model under which most of its restaurants are owned and operated by independent, small and medium-sized businesses. It’s worth stating that ensuring consistent values and behaviours can be difficult to achieve in a franchise.

But doing business as a franchise is no excuse for harassment and discrimination and there is potential for a franchisor to be liable for the actions or inactions of franchisees and the employees of those franchisees.

The Government introduced the new duty to prevent sexual harassment in 2024 and businesses will face further potential liability for the actions of third parties under the Employment Rights Bill. Businesses cannot wait and must take action now to protect workers from discrimination and harassment.

Zero hours contracts at Mcdonald’s

The Government’s select committee also questioned Mr Macrow over McDonald’s continued use of zero-hours contracts, with workers saying insecure hours lead to an imbalance of power. However, other workers said zero-hours contracts worked well for them.

Zero hours arrangements may not be suitable for everyone, but they do work in practice for those employees who want flexibility in their relationship to work.

Whilst they can be exploited and conjure a culture of favouritism, this really points to a wider problem with a company’s culture not with zero hours contracts themselves.

Zero hours arrangements are widely used in the UK and employers who utilise them need to start preparing now for new rights and protections anticipated under the Employment Rights Bill. See our recent article for further information.

Comment

The continued scrutiny of McDonald’s should stand as a stark reminder for employers to review their current practices on discrimination, harassment and cultivating safe environments for their employees.

For more information about this article or any other aspect of people services reimagined, download our App for Apple or Android, and contact your integrated HR, employment law and health & safety team at AfterAthena today. For new enquiries, book your free consultation with a qualified expert to get started.