8 August 2024

The Fair Work Ombudsman has recovered $217,806 for 209 underpaid food outlet employees in Cairns, following surprise inspections.

Fair Work Inspectors investigated 35 businesses in Cairns’ fast food, restaurants and cafés sector – mostly ‘cheap eats’ venues in Cairns City, Cairns North, Palm Cove and Trinity Beach. Businesses were targeted for investigation based on FWO intelligence from a range of sources, including anonymous reports.

Of 31 investigations finalised, the FWO found 23 businesses (74 per cent) had breached workplace laws. The most common breaches were a failure to pay various penalty rates (21 businesses), underpaying minimum wages (11 businesses), and not paying the right allowances (9 businesses).

Fair Work Ombudsman Anna Booth said improving compliance in the fast food, restaurants and cafés sector was an ongoing priority for the regulator.

“These disappointing Cairns findings are part of a national food precincts program where we’ve often found that low-cost dining comes at the expense of workers’ lawful wages,” Ms Booth said.

“Employers must follow all wage laws, including penalty rates which generally serve as compensation for those working at times when most people are not. 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.”

The largest amount recovered from any one business was $46,576 for six restaurant employees, variously cooks, kitchen hands and bar attendants. These workers were underpaid penalty rates, had outdated rates of pay resulting in underpaid minimum rates, and missed out on overtime pay.

Following investigations, the FWO issued 23 Compliance Notices, recovering the $217,806 for the 209 workers.

Eleven Infringement Notices for pay slip and record-keeping breaches also resulted in $12,895 in fines paid.

Investigations into four businesses are ongoing.

The national program of audits has previously targeted eateries in locations such as Melbourne, Brisbane, Sydney, Adelaide, Hobart, Launceston, Darwin, the Gold Coast, Perth, Newcastle, Canberra and the Sunshine Coast.

More than $1.15 million has been back-paid to about 2,000 Queensland workers in the fast food, restaurants and cafés sector following FWO food precincts inspections in Brisbane, the Gold Coast, the Sunshine Coast and Cairns.

The FWO has interactive tools to help employers and employees in the fast food, restaurants and cafés sector, and information for 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.

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.