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Almost 500 employees were short-changed by more than 30 businesses across the city.
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Food shops forced to back-pay $400k after FWO blitz on Darwin
13 September 2022
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9 minute read
A blitz on Darwin food precincts by the Fair Work Ombudsman has uncovered 34 non-compliant businesses that had underpaid staff a total of almost $400,000.
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Surprise inspections of 48 outlets, selected due to previous workplace breaches, found 479 staff had been short-changed on penalty rates, casual loading, minimum pay and overtime.
The FWO said 31 businesses had underpaid workers, 10 had failed to meet payslip and record-keeping requirements, and three remained under investigation.
“It is disappointing to find high rates of non-compliance in Darwin’s fast food, restaurant and cafe sector,” Fair Work Ombudsman Sandra Parker said. “Employers can’t pick and choose which wage laws they follow.”
The 479 employees have been back-paid $390,177, with the worst offender one business that had underpaid 15 casual and part-time employees a total of $94,697.
In addition, $12,792 in fines were issued to the 10 businesses found in breach of pay slip and record-keeping requirements, along with compliance notices.
Non-compliant businesses were told that any future breaches might lead to higher-level enforcement action by the FWO.
The businesses chosen for inspection either had a history of non-compliance with the FWO, were the subject of anonymous tip-offs, or were known to employ vulnerable visa holders.
Visa holders were employed at two-thirds of businesses investigated.
“We will continue to prioritise improving compliance in this sector and protecting vulnerable workers such as visa holders and students who are over-represented,” Ms Parker said.
“Employers can use our free tools and resources if they need assistance meeting their obligations. Workers with concerns about their pay or entitlement should come forward for help.”
The Fair Work Ombudsman has an agreement with the Department of Home Affairs, called the Assurance Protocol, where visa holders with work rights can ask for its help without fear of visa cancellation.
The Darwin audits were part of a national program that has targeted food precincts in Melbourne, Brisbane, Sydney, the Gold Coast, Perth, Adelaide, Hobart and Launceston.
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