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A former director has been forced to back-pay workers thousands in underpayments over two years.
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FWO fast food crackdown penalises Subway director over $30k
24 March 2023
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9 minute read
The Fair Work Ombudsman’s (FWO) fast food crackdown has secured court orders for more than $31,000 in penalties and back pay against the former director of two Subway outlets in Adelaide.
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The court imposed a $5,425 fine against Jason Matthew Hood, who was the director of the two companies that previously operated the Subway franchise outlets on Jetty Road in Glenelg and Bayside Village Shopping Centre in the same suburb.
The penalties – which included a back payment of $25,597 to three workers – came after Mr Hood failed to obey compliance notices requiring him to back pay the three underpaid workers initially.
The FWO investigated after receiving requests for assistance from the affected workers which saw compliance notices issued in September 2020.
It found three workers had been underpaid their entitlements including minimum rates, casual loadings and annual leave entitlements on termination of employment.
The majority of the back pay order related to one employee who was owed $22,247 while the other two workers, aged 17 and 18 at the time, were owed $1,750 and $1,600 respectively.
Ruling on the matter Judge Stewart Brown said the workers in the fast food industry were “vulnerable to exploitation by unscrupulous employers due to the nature of their work and the hours required of them”.
“The specific objectives of the compliance notice system must be supported and a general message sent as to the need for prompt and complete compliance to them,” said Judge Brown.
Fair Work Ombudsman Sandra Parker said directors involved in failing to act on compliance notices must be aware they could face penalties on top of the requirement 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 protect vulnerable employees, such as young workers, and improve conditions in the fast food, restaurant and cafe sector continue to be priorities for the FWO.”
The penalties come as part of the FWO’s crackdown on the treatment of employees among fast food operators which last year saw 77 Brisbane shops forced to back pay over $400,000 in unpaid entitlements along with the 31 Darwin outlets forced to back pay over $390,000.
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