Coffee franchise faces pay charges

THE Fair Work Ombudsman has commenced legal action against the operator of a Geelong Coffee Club outlet, alleging it underpaid two workers more than $15,000.

Edison Peng and his company JMSL Pty Ltd, which owns and operates the Coffee Club franchise outlet at the Westfield Geelong shopping centre, are facing the Federal Circuit Court.

It is alleged that two young employees were paid flat rates as low as $15 per hour, an underpayment of the junior hourly rates, casual loadings and penalty rates for weekend and public holiday work.

The two workers were allegedly underpaid $15,412.

It is alleged that one of the workers, aged 19 to 20, was underpaid $12,910 between May 2016 and August 2017 and the other, aged 20, was underpaid $2502 over a three-month period in 2018.

Fair Work Inspectors investigated the underpayment allegations after the two workers contacted the FWO for help.

“The alleged payment of low, flat rates that undercut award entitlements is completely unacceptable conduct and we treat underpayment of young workers particularly seriously,” Fair Work Ombudsman Sandra Parker said.

“Enforcing compliance with workplace laws in the fast food, restaurant and cafe sector continues to be a priority for the Fair Work Ombudsman.”

It is alleged that Mr Peng and JMSL Pty Ltd also breached laws during the Fair Work Ombudsman’s investigation by providing false and misleading records and pay slips to Fair Work inspectors that overstated the rates the two employees were paid.

“Employers should be aware that the Fair Work Ombudsman takes allegations of false and misleading records extremely seriously,” Ms Parker said.

Mr Peng faces penalties of up to $12,600 per contravention and JMSL Pty Ltd up to $63,000 per contravention.

Most of the alleged underpayment has been rectified and the FWO is seeking court orders requiring Mr Peng and his company to pay the outstanding amount.

The FWO is also seeking court orders requiring Mr Peng to complete workplace relations training.

A directions hearing is listed in the Federal Circuit Court in Melbourne on November 12.

It is the second time the Fair Work Ombudsman has taken legal action against a Coffee Club franchisee. In 2017, Fair Work Ombudsman secured more than $180,000 in penalties against a former Coffee Club cafe franchisee in Brisbane for requiring an overseas worker to pay back $18,000 of his wages through an unlawful cashback payment.