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Surprise inspections from the Fair Work Ombudsman (FWO) have resulted in a recovery of $217,806 for 209 underpaid food outlet employees in Cairns.
Fair Work inspectors recently investigated 35 businesses in Cairns’ fast-food, restaurants, and cafés sector – mostly “cheap eats” venues – discovering that some were grossly underpaying their staff through numerous violations.
Of the 31 investigations finalised, the FWO found that 74 per cent (23 businesses) had breached workplace laws. The most common breaches were the failure to pay various penalty rates (21 businesses), underpaying minimum wages (11 businesses), and not paying the right allowances (9 businesses).
FWO’s Anna Booth shared her disappointment with the Cairns-based establishments, proclaiming that improving compliance within the fast-food, restaurants and cafés sector was an ongoing priority for the regulator.
“These disappointing Cairns 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,” said Booth.
“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.”
One business, in particular, was forced to pay $46,576 for the underpayment of six restaurant employees, various cooks, kitchen hands and bar attendants. The variety of underpayments included underpaid penalty rates, minimum rates, and missed out on overtime pay.
In total, 23 compliance notices were issued by the FWO, accumulating to $217,806 for the 209 workers. At the moment, there are still four businesses going through investigations. Eleven total infringement notices were also imposed; these were for payslip and record-keeping breaches that resulted in $12,895 in fines paid.
“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,” said Booth.
As previously reported on HR Leader, numerous outlets in the fast-food, restaurants and cafés sector have been exposed by the FWO and other regulators for underpayment of employees. One standout was the record-breaking exploitation of sushi workers, which accumulated to $15 million in total penalties.
In this instance, migrant workers were targeted by this gross exploitation, which was rightfully discovered by the FWO.
“The record penalties imposed in this matter drive home the fact that deliberately and repeatedly exploiting workers, including vulnerable migrant workers, is reprehensible conduct that will not be tolerated in Australia,” said Booth.
“If you deliberately underpay migrant workers and try to cover it up with false or misleading records, you will be found out and will pay a heavy price.”
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
