27 June 2024

The Fair Work Ombudsman has recovered $769,475 for 379 underpaid food outlet employees in Perth, following surprise inspections.

Fair Work inspectors investigated 46 businesses in Perth’s fast food, restaurant and café sector, mostly ‘cheap eats’ venues in Belmont, Victoria Park and East Victoria Park, last year. The inspections were prompted by intelligence from a range of sources, including anonymous reports.

Of 41 investigations finalised, the FWO found 38 businesses (93 per cent) had breached workplace laws.

The most common breach was underpayment of or failure to pay penalty rates (33 businesses), as well as failure to pay correct minimum wages for ordinary hours (33 businesses); 25 businesses did both. Thirteen businesses had not met their employees’ leave entitlements.

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

“These disappointing Perth 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 highest amount recovered from an employer was $77,673 for 53 employees who had not received the right weekend penalty rates, casual loading and base rates of pay.

Following investigations, the FWO issued 38 Compliance Notices, recovering $742,658 for 359 workers. Some employers rectified underpayments without the use of an enforcement tool.

The regulator also issued 13 Infringement Notices for payslip and record-keeping breaches, with fines totalling $38,380. The FWO continues to investigate five businesses.

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 and Canberra.

Results are still pending following FWO inspections of northern Perth food outlets in suburbs such as Wanneroo and Joondalup in March this year.

In 2022-23, 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, restaurant and café sector, and for any franchisees. Employers can also use 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.