Business penalised $20k after migrant worker breach

The former operator of an NSW café has been hit with a $20,000 penalty following a workplace breach involving a migrant worker.

HML Holdings, the former operator of an Espresso Warriors café in the Southern Highlands, has been fined $20,000 for failing to comply with a compliance notice requiring it to calculate and back-pay entitlements to one of its former workers.

The worker, a Nepalese man, was employed at the café as a full-time chef between June 2020 and February 2022 and was a visa holder during that time.

The Fair Work Ombudsman (FWO) investigated the matter after receiving a request for assistance from the affected worker.

A Fair Work inspector issued the notice in May 2022 after the worker was not paid accrued but untaken annual leave entitlements at the end of his employment, owed under the Fair Work Act’s National Employment Standards.

The Federal Circuit and Family Court imposed the penalty against HML Holdings and ordered it to pay the entitlements owing to the worker, plus interest.

In handing down her decision, Judge Natasha Laing found that penalties must be set at a level that demonstrates serious consequences for non-compliance, to deter others from failing to comply.

“The penalty imposed in this matter should be sufficiently high to impress upon other employers the importance of complying with their legal obligations, and in particular the need to comply with statutory notices from the FWO,” Judge Laing said.

Commenting further, acting Fair Work Ombudsman Kristen Hannah said the matter serves as a reminder to business operators that fail to act on compliance notices.

“When compliance notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” Ms Hannah said.

“Employers also need to be aware that taking action to improve compliance in the fast food, restaurant and café sector and protecting vulnerable workers like visa holders are enduring priorities for the FWO. Visa holders have the same workplace rights as any other employee.”

“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”

The FWO has filed 126 litigations involving visa-holder workers and secured more than $13.4 million in court-ordered penalties in visa-holder litigations in the past five full financial years.