Former café operators face court
The Fair Work Ombudsman has commenced legal action against the former operators of a café in Melbourne for alleged breaches of the Fair Work Act, which include unlawfully deducting money from a worker.
Facing court is Monaco Willows Pty Ltd, which operated Tusk in Windsor, and the company’s sole director and secretary, Francis Placentino.
The regulator investigated after receiving a request for assistance from a visa holder Monaco Willows employed at the café as a full-time chef between October 2021 and April 2023.
It is alleged that the company made deductions from the worker’s fortnightly pay – which it described as being for food, coffee and drinks – without the worker’s authorisation in writing (or at all), as required under the Fair Work Act.
It is alleged this resulted in a total of $3,610 in unpermitted deductions over the course of the worker’s employment period.
During the investigation, a Fair Work Inspector formed a belief that the worker was also underpaid minimum wages, public holiday and overtime rates and annual leave entitlements, under the Restaurant Industry Award 2020 and the Fair Work Act’s National Employment Standards.
In response, the inspector issued a Compliance Notice to Monaco Willows in September 2023, which required it to calculate and back-pay these entitlements to the worker.
The Fair Work Ombudsman alleges Monaco Willows, without a reasonable excuse, failed to comply with the Compliance Notice.
It is alleged Mr Placentino was involved in both contraventions.
Fair Work Ombudsman Anna Booth said employers needed to follow the law if they were considering deductions from wages.
“Unlawful deductions from workers’ wages, like we are alleging to have happened in this matter, are unacceptable.
“Deductions are lawful only in a limited range of situations, and employers must understand those laws. We have a range of information to help employers get it right, including on our deducting pay webpage.”
Ms Booth said the workplace regulator would continue to take businesses to court where Compliance Notices are not complied with.
“Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties, and to take steps to comply with a Compliance Notice including calculating and back-paying entitlements,” she said.
“Employers should also be aware that taking action to protect migrant workers and improve compliance in the fast food, restaurants and cafés sector are priorities for the Fair Work Ombudsman. Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.”
The FWO is seeking penalties in court.
For the alleged breach relating to unlawful deductions, Monaco Willows faces a penalty of up to $93,000 and Mr Placentino faces a penalty of up to $18,780.
In addition, for the alleged failure to comply with the Compliance Notice, Monaco Willows faces a penalty of up to $46,950 and Mr Placentino faces a penalty of up to $9,390.
The regulator is also seeking court orders requiring Monaco Willows to comply with the Compliance Notice including calculating and rectifying any underpayments, plus superannuation and interest, in addition to paying the worker the alleged unauthorised deductions amount.
A hearing is listed in the Federal Circuit and Family Court in Melbourne on 14 February 2025.
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance. An interpreter service is available on 13 14 50. Employees can also seek information from their employer or their union, if they are a union member.
The FWO has resources on our website for visa holder workers, who have the same rights as all other workers.
The FWO provides a free online course to help employers understand what a Compliance Notice is and how to respond if they get one. The Compliance Notice course, among a suite of free interactive courses on offer for employers, managers and employees, is available in our online learning centre.
The FWO also has interactive tools to help employers and employees in the fast food, restaurants and cafés sector, and employers can also use the FWO’s pay calculator and Small Business Showcase.
