Legal battle on menu
A TABLELANDS restaurant is facing legal action in the Federal Circuit Court for allegedly underpaying two employees between May 2018 and December 2019.
The Fair Work Ombudsman has commenced legal action against Nick’s Swiss Italian Restaurant, in Yungaburra, with Engiadigna Pty Ltd and sole director Niculin Crameri being sued.
The investigation started when two former casual employees – both visa holders from Italy with one working as a cook/chef and the other a waiter/table runner – lodging requests for assistance.
A compliance notice was issued after a Fair Work inspector formed “a belief the company had underpaid the two employees … including minimum wages, penalty rates and overtime owed”.
The direction required Engiadigna to calculate and back-pay employee entitlements but the regulator now alleges the company failed to comply, according to Fair Work Ombudsman documents. Mr Crameri said the two had been employed on a “handshake deal” that saw meals and accommodation deducted from their wages.
“In relation to the alleged offences the former employees seem to forget there was a verbal agreement between Nick’s Restaurant and themselves,” the Yungaburra businessman said.
“We did pay them what we owned them but we took away accommodation and food, and we paid tax and superannuation, and now they want to bring us to court and we are happy to go and make it right.”
He said the two staffers, who were travelling around Australia at the time, worked at the restaurant for several months then continued touring before returning to resume employment.
“They went from here, all around Australia to Perth, and then came back because they had a good job and used my shed to improve her campervan and stayed in my place,” he said.
“Every staff since, years and years, everyone gets a letter, but these two staff only had a handshake agreement and we have a lot of different workers from Australia and overseas and they are paid correctly.
“Unfortunately this happened and it’s a warning for other people to make sure they don’t get caught in handshake deals.”
The Fair Work Ombudsman will seek penalties against Engiadigna and Mr Crameri as well as orders to comply with the Compliance Notice which include “rectifying the underpayments in full, plus superannuation and interest”.
Engiadigna is facing a maximum penalty of $31,500, and Mr Crameri a maximum $6300, with a Federal Circuit Court directions hearing listed in Brisbane on September 4.