Back payment of entitlements puts Victorian business in Fair Work firing line

The owners of an Italian restaurant in Melbourne have been hit with significant penalties by the Fair Work Ombudsman (FWO) after failing to comply with a Compliance Notice and back paying entitlements to an affected worker.

The FWO has secured a total of $72,800 in penalties for the matter involving the restaurant, which is known as ‘Mother Dough’, located in Hawthorn.

Champagne or Wine Pty Ltd, which runs the restaurant, has been ordered to pay $52,000 while company directors Jeffrey Dean Baldassarre and Allison Claire Barnes were individually penalised $10,400 each.

As per a statement from the FWO, the penalties were the result of their failure to adhere to a Compliance Notice, which mandated the calculation and subsequent back-payment of entitlements to a young waiter. Additionally, the operators were found to have neglected a Notice to Produce records.

The worker was employed at Mother Dough as a waiter on a casual basis between June 2018 and September 2019, when he was aged 21–22.

The matter first came about following a July 2020 investigation which formed the belief the worker was underpaid minimum wages and penalty rates for evening and weekend work, under the Restaurant Industry Award 2010.

In response to the ruling, Champagne or Wine Pty Ltd has been instructed to fully reimburse the affected worker, along with additional superannuation entitlements.

Commenting off the back of the ruling, Acting Fair Work Ombudsman Kristen Hannah emphasised that business operators disregarding official notices could face serious legal repercussions.

“When Compliance Notices and Notice to Produce are not followed, we are prepared to take legal action to ensure we can fully investigate matters and ensure workers receive their lawful entitlements,” she said.

“Employers also need to be aware that taking action to improve compliance in the fast food, restaurant and café sector and to protect young workers are priorities for the FWO.

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

Judge Caroline Kirton, who imposed the penalties, said the matter showed a “lack of understanding of the contravening conduct and indeed a lack of contrition”.

“The Respondents have demonstrated a stubborn determination not to take steps in compliance with the Compliance Notice and Notice to Produce, indicating that there is plainly a need for specific deterrence,” Judge Kirton said.

“The Court considers that general deterrence is desirable within the hospitality industry, particularly restaurants, given the propensity of employers to hire young and vulnerable staff, with little regard for their legal entitlements.”