$760k recovered for underpaid food outlet workers in Perth

The Fair Work Ombudsman (FWO) has recovered $769,475 for 379 underpaid food outlet employees in Perth following surprise inspections.

The Fair Work inspectors are at it again, this time with an investigation into 46 businesses in Perth’s fast-food, restaurant, and café sector.

The main target of the investigation was “cheap eats” venues in Belmont, Victoria Park, and East Victoria Park last year after numerous anonymous tips and reports were sent through.

Of the 41 investigations finalised, the FWO found 38 businesses were in breach of workplace laws (93 per cent).

“These disappointing Perth 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 FWO’s Anna Booth.

The most common breach of the mammoth haul offences was the underpayment or failure to pay penalty rates (33 businesses) as well as failure to pay correct minimum wages for ordinary hours (33 businesses); while 25 businesses did both. Thirteen businesses also had not met their employees’ leave entitlements.

Booth said compliance in the fast-food, restaurant, and café sector has always been an area of concern and was an ongoing priority for the regulator.

“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 said.

“We also urge workers with concerns about wages and entitlements to reach out to us – including anonymously if preferred.”

Following on from the investigations, the FWO issued 38 total compliance notices, recovering a total of $742,658 for 359 workers.

Exactly $77,673 was the highest amount recovered from an employer and was distributed to the 53 employees who had not received the right weekend penalty rates, casual loading, and base rates of pay.

The FWO also issued 13 total infringement notices for payslip and record-keeping breaches, with fines totalling $38,380. Five businesses are still under investigation. Some employers, however, rectified the payments without the use of an enforcement tool.

In 2022–23, FWO secured more than $800,000 in court-ordered penalties against food sector employers.

Overall, the FWO continues to crack down on employers not following through on their legal requirements to pay their employees correctly, and rightfully so. Rampant wage theft has been a running theme across Australian workplaces, affecting migrant workers especially. As the crackdown continues, hopefully, it will deter bad actors who maliciously commit these acts for financial gain.