Chairman Russ Withers and Chief Executive Officer Warren Wilmot have stepped-down from their positions effective-immediately.

It was previously revealed that the company has chronically underpaying international students and other visa holders, Australian Food News reported. It has prompted a consumer backlash after it was revealed that some staff were working for as little as $5 per hour.

Herald Sun reported the retailer claimed that Warren resigned after the recent realization of the extent to which 7-eleven franchisees had underpaid workers, confessing that a new independent boss was appropriate in the circumstances.

Russ has also resigned from the Australian Olympic Committee on the wake of the scandal. He brought forward plans to transition the chairman role to deputy Michael Smith. But, he will remain as chairman of the group holding company which has investments in Starbucks and 7-eleven including real estate and share portfolios.

Over the longer term Michael will need to forge a very close working relationship with our new CEO so it makes sense for that process to commence from the outset," Russ said. "Michael will lead the appointment of Warren's replacement and take an active lead role in navigating 7- Eleven through the current issues we are facing relating to the underpayment of staff. We're very fortunate to have someone with Michael's credentials and track record on the board and able to step into this role. Michael's detailed knowledge of the 7-Eleven business together with his breadth of experience across a range of boards is exactly what we need at present."

"Naturally this is a major decision for me to stand aside as Chairman, however I will continue to be a shareholder and I am determined to make sure the Company is in the right hands to move forward," he continued.

7-Eleven has appointed former ACCC commissioner Professor Allan Fels to lead an inquiry into the underpaying scandal. The company said it will meet any valid claims of underpayment in lieu of seeking recompense from relevant franchisees.

Michael Smith, who is a former iiNet chairman and former chairman of the West Coast Eagles football club, been on the 7-Eleven board since 1999 and deputy chairman since August 2014.

Bob Baily has been appointed interim chief executive. He is the former chairman of the Australian Association of Convenience Stores, and is a current non-executive director at City Pharmacy and The Muir Electrical Company.