Domino's Pizza Enterprises (ASX:DMP) misled franchisees by asking them to underpay thousands of delivery drivers and in-store staff under obsolete employment agreements that did not include key entitlements, Australia's Federal Court ruled on Wednesday.

The class action filed in 2019 by Riley Gall, a former Domino's delivery driver, covers workers employed by Domino's Australian franchisees between 2013 and 2018.

The company's conduct was "objectively wrong" when it instructed franchisees to pay workers under outdated agreements as opposed to the applicable Fast Food Industry Award, which carries better terms and conditions, the court said.

It added that the determination of claims for loss and damage by group members will require a further hearing.

Domino's Pizza Enterprises did not immediately respond to a request for comment from MT Newswires.