$58,000 back-paid to Melbourne food staff
The Fair Work Ombudsman has recovered more than $58,000 for 121 underpaid food outlet employees in south-east Melbourne, following surprise inspections.
The underpayments were discovered following the regulator’s investigations of 32 food businesses, mostly “cheap eats” venues in Bentleigh, Bentleigh East, Carnegie, Glen Huntly, Caulfield, Caulfield East, Elsternwick and Clayton.
The businesses were targeted based on FWO intelligence from a range of sources, including anonymous reports.
The FWO found 26 businesses (81 per cent) had breached workplace laws.
The most common breaches were underpaying minimum wages for ordinary hours (19 businesses), underpaying various penalty rates (16 businesses), and not keeping accurate time records (eight businesses).
“The high rate of breaches of workplace laws in south-east Melbourne’s fast food, restaurants and cafés sector is disappointing, and consistent with our findings in the sector nationwide,” Fair Work Ombudsman Anna Booth said.
“Employers must follow all wage laws, including paying minimum wages, which have recently increased. Those doing the wrong thing are being found out and held to account.
“Employers should access our wide range of free online tools and resources to ensure they’re meeting their obligations, or contact the FWO directly for free advice. We want to help businesses in the food sector get it right in the first place.
“We also urge workers with concerns about wages and entitlements to reach out to us - including anonymously if preferred.”
Ms Booth confirmed that improving compliance in the fast food, restaurants and cafés sector is a continuing priority for the Fair Work Ombudsman, with the other priority sectors being aged care services, agriculture, building and construction, disability support services, large corporates and universities.
“We are targeting these sectors as they are at significant risk of non-compliance with workplace laws, or have a history of systemic underpayments, or both,” Ms Booth said.
“We are committed to working with these sectors to promote and ensure compliance.”
The highest amount recovered from one of the Melbourne businesses was $13,071 for four casual fast food workers who were paid flat rates below the award minimum for all hours worked.
Following investigations, the FWO issued 22 Compliance Notices, recovering almost all of the $58,391 for 121 employees (about $200 was recovered without the use of an enforcement tool).
Employers who had not met their payslip and record-keeping obligations were fined $31,461 after receiving 15 Infringement Notices.
More than $1.2 million has been recovered for workers in Melbourne’s fast food, restaurants and cafés sector as a result of investigations in the Food Precincts Program alone.
As part of its national Food Precincts Program, the FWO has undertaken surprise inspections in Melbourne’s Degraves Street and Hardware Lane; inner south and inner west; Victoria Street, Richmond; and Swanston Street and inner north.
In other parts of the country, the FWO has inspected food precincts in Brisbane, Sydney, the Gold Coast, Adelaide, Darwin, Hobart, Launceston, Perth, Newcastle, Canberra and Queanbeyan, and Queensland’s Sunshine Coast.
In 2022-23, the FWO secured more than $800,000 in court-ordered penalties against food sector employers.
The FWO has interactive tools to help employers and employees in the fast food, restaurants and cafés sector, and for any franchisees. Employers can also use the FWO’s pay calculator and Small Business Showcase.
The FWO also has resources for visa holder workers – who have the same workplace rights as any other workers.
In addition to the sector-based priority areas, the Fair Work Ombudsman has enduring priorities of providing education and assistance to small business employers and employees, and to vulnerable workers such as migrants and young workers.
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace. A free interpreter service is available on 13 14 50.
Issues can be reported online anonymously, including in languages other than English. Employees can also seek information from their union, if they are a member, or from their employer.
