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Two Melbourne eateries short-changed workers on minimum wages, overtime and penalty rates.
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FWO fines two restaurants $33k for underpaying staff
22 December 2022
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10 minute read
The FWO has secured fines of over $33,000 against two Victorian restaurants in its latest move to crackdown on employee underpayments in the sector.
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Cafe 3564 in Echuca, Victoria, will pay a $14,985 penalty while the sole director of the business, David Bowman, has been fined an additional $2,997.
The owner of Cafe 3564, Hospitality 3564 Pty Ltd, was penalised for failing to obey a compliance notice requiring it to back-pay entitlements to a Chinese visa holder who was employed as a cook between July 2017 and September 2019.
The FWO investigated after receiving a request for assistance from the worker and uncovered underpaid minimum wage rates, overtime pay and penalty rates under the award.
Hospitality 3564 eventually back paid the worker over $48,000 in entitlements but only after the Fair Work Ombudsman commenced legal action.
Judge Jonathon Forbes found that the affected worker had suffered substantial loss and accepted that Mr Bowman admitted the business had no reasonable excuse for not obeying the compliance notice.
“Employers who receive compliance notices should be under no misapprehension about what is required from them,” said Judge Forbes.
“Non-compliance must attract a sufficient sanction to meet the objectives of general and specific deterrence.”
The FWO has also won $15,717.60 in penalties against a Burger Boss outlet in Melbourne’s south-east.
Benny842 Pty Ltd, which operated the restaurant, has been fined $13,320 with an additional $2,397.60 penalty against the company’s former director Shane Dharmatilake.
The FWO found that Benny842 failed to heed a compliance notice requiring it to back pay entitlements to a 20-year-old food and beverage attendant it employed between June and October 2020 with Mr Dharmatilake involved in the contravention.
The court also ordered the business to back pay the worker in full plus superannuation and interest.
Judge Amanda Mansini found that the business’ and Mr Dharmatilake’s failure to follow the compliance notice was deliberate and serious.
“General deterrence is important in the cafe and restaurant industry where there is evidence of regular instances of non-compliance with minimum wages and conditions,” she said.
Fair Work Ombudsman Sandra Parker said business operators needed to be aware that if they failed to follow compliance notices they could face penalties on top of having to back pay the workers.
“When compliance notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” said Ms Parker.
“Employers also need to be aware that taking action to improve compliance in the fast food, restaurant and cafe sector continues to be a priority for the FWO.”
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