27 March 2025

The Fair Work Ombudsman is conducting surprise inspections of fast food outlets, restaurants and cafés in Sydney’s Newtown and Enmore, to make sure workers are receiving the right pay and entitlements.

Twenty businesses are receiving the surprise inspections this week. Investigations will continue long after the inspections take place.

Fair Work Inspectors are interviewing managers and employees on-site in the popular food precincts, focusing on checking records and pay slips, as well as any use of unpaid work.

The Fair Work Ombudsman posted on social media in December to call out that workers nationally must be paid for every hour worked, supported by employer and employee stakeholders in the FWO’s Fast Food, Restaurants and Cafés Reference Group.

“Our united message was clear – if an employee is required to be at work, the law requires that time is paid,” Fair Work Ombudsman Anna Booth said.

“Required to come in before a shift to get the premises ready? You must be paid.

“Asked to stay back after close to cash up and clean up? You must be paid.

“Asked to come in for a meeting on a day off? That time must be paid.

“Inspectors are on the ground in one of Sydney’s hospitality hubs this week speaking with employees and holding employers to account if they are not following workplace laws, including due to any unpaid work,” Ms Booth said.

In Newtown and Enmore, businesses were selected for inspection based on prior non-compliance history, anonymous reports and/or employment of workers that are vulnerable to exploitation, such as young people and visa holders.

Most of the eateries are ‘cheap eats’ venues.

Ms Booth said protecting vulnerable workers and improving compliance in the fast food, restaurants and cafés sector were priorities for the regulator.

“These inspections 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.

“This sector engages many young workers and visa holders who can be vulnerable, as they are often unaware of their workplace rights or unwilling to speak up.

“We won’t hesitate to take enforcement action if needed.

“We urge workers with concerns about wages and entitlements to reach out to us - including anonymously if preferred. Employers should access our free tools and resources to ensure they’re meeting their obligations, or contact the FWO directly for free advice.”

Inspectors are also on alert for unlawfully low flat rates of pay; “off the books” employment arrangements; inadequate or missed breaks; non-payment of penalty rates and overtime rates; inadequate or false record-keeping and pay slips; and cashback schemes, in which employees are made to unlawfully pay back some of their wages.

After snap inspections in 2018, the FWO’s investigations found that 74 per cent of food businesses audited in Newtown were non-compliant with workplace laws. The regulator recovered more than $80,000 for 286 employees.

In 2023, the FWO recovered more than $239,000 for 333 underpaid Sydney workers after surprise inspections of fast food outlets, restaurants and cafés in Haymarket, Chinatown, Darling Harbour, Barangaroo, Surry Hills and Darlinghurst.

The FWO’s surprise inspections under the Food Precincts Program have also taken place in Melbourne, Hobart, Brisbane, the Sunshine Coast, Perth, Canberra’s north and Queanbeyan in NSW, Newcastle, Adelaide, Darwin, Launceston and Cairns.

In 2023–24, the regulator recovered $5.6 million for more than 3000 underpaid fast food outlet, restaurant and café workers nationally.

The FWO has secured some of its highest court-ordered penalties in litigations involving businesses in this sector, such as the record $15.3 million against the former operators of Sushi Bay outlets in August 2024, for deliberately exploiting vulnerable migrant workers, including underpaying staff more than $650,000.

In April 2024, the FWO secured $4 million in penalties against the former operators and managers of three Din Tai Fung restaurants for deliberately and systematically underpaying vulnerable migrant workers and providing false records.

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

Employers can use the FWO’s pay calculator and Small Business Showcase. Small businesses can also self-assess their compliance with this checklist.

We also have resources for visa holders – who have the same workplace rights as all other employees – and young workers. Know a workplace not doing the right thing but don’t want to get involved? Report it anonymously – in your language.

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.