$280k recovered for underpaid food workers

Following a series of “surprise” inspections, the Fair Work Ombudsman (FWO) has recovered $281,729 for 305 underpaid food outlet employees in Newcastle.

As detailed in an FWO statement, Fair Work inspectors recently investigated 43 businesses in Newcastle’s fast food, restaurant, and café sector – most of which were “cheap eats” venues – in suburbs, including Broadmeadow, Cameron Park, Hamilton, Islington, Maryland, Mayfield, and Merewether.

Of 41 investigations finalised, the FWO found workplace law breaches in 30 businesses, accounting for 73 per cent of food outlets.

Twenty-nine businesses were found to have underpaid or failed to pay penalty rates, which variously included evening and night rates, and weekend and public holiday loading, as well as casual loading. Nineteen businesses were found to have underpaid minimum wages for ordinary hours.

The highest amount recovered from any one business was $82,583, FWO noted, for two casual fast-food workers who were not paid their casual minimum wages, as well as their public holiday and weekend loading.

Following the investigations, the FWO issued 26 compliance notices, which resulted in recoveries of $277,006 for 302 workers.

Some employers, the regulator said, rectified underpayments without the use of an enforcement tool.

Elsewhere, eight infringement notices for pay slip and record-keeping breaches have resulted in $22,497 in fines paid.

Speaking about the recovery of wages, Fair Work Ombudsman Anna Booth said that improving compliance in the fast food, restaurant and café sector was an ongoing priority for the regulator.

“These disappointing Newcastle 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,” she said.

“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.

“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.”

Two businesses remain under investigation, the regulator added.

Jerome Doraisamy is the managing editor of Momentum Media’s professional services suite, encompassing Lawyers Weekly, HR Leader, Accountants Daily, and Accounting Times. He has worked as a journalist and podcast host at Momentum Media since February 2018. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.