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The Fair Work Ombudsman (FWO) has recovered $310,017 for 370 underpaid food outlet employees in Adelaide’s west.
Fair Work inspectors have investigated 36 fast-food outlets, restaurants, and cafés, with most being cheap eats venues. Of the 33 investigations finalised, the FWO found 26 businesses (79 per cent) had breached workplace laws. This resulted in a total of $310,017 recovered for workers, with over $100,000 in fines for the contraventions.
The “cheap eats” venues were in Bowden, Croydon, Allenby Gardens, Woodville, Grange, and Flinders Park. These businesses were targeted for investigation based on FWO intelligence that was compiled from a number of sources, such as anonymous reports.
The most common breaches were a failure to pay various penalty rates (25 businesses), underpaying minimum wages for ordinary hours (20 businesses), record-keeping breaches (eight businesses), and pay-slip breaches (eight businesses).
Fair Work Ombudsman Anna Booth believes that improving compliance in the fast food, restaurants, and cafés sector, especially, has been an ongoing priority for the regulator.
“These disappointing findings in Adelaide’s western suburbs 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.”
Booth expressed the need for employers to ensure that they are record keeping, claiming it is the “bedrock” of compliance.
“Record keeping is the bedrock of compliance, and some employers have paid the price for failing to follow those laws.
“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.
“We also urge workers with concerns about wages and entitlements to reach out to us – including anonymously if preferred,” said Booth.
The largest amount recovered from any one business was $65,986 for 10 restaurant employees, who were cooks, kitchen hands, and waiting staff. These workers were underpaid penalty rates and minimum rates.
In terms of the penalties, 16 infringement notices for pay-slip and record-keeping breaches were issued to a combined nine businesses, resulting in $103,156 in fines paid.
The FWO, in total, issued 26 compliance notices, recovering $272,991 for 332 workers, with the rest of the money recovered being voluntarily back paid by employers.
Investigations into three businesses are still ongoing.
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.
