Workers underpaid $300k

Fair Work sting finds breaches rife in food industry

MORE than $300,000 has been returned to cafe and restaurant workers after a tactical Fair Work sting at four capital city food hot spots found 75 per cent of businesses were breaking the law.

The Fair Work Ombudsman audit of 156 fast food businesses and cafes across popular food districts – including Melbourne’s Swanston and Lygon streets and King St in Newtown – uncovered various breaches of workplace law following anonymous tip-offs and requests for assistance from employees. Site visits by inspectors were co-ordinated to minimise the potential for forewarning in an industry Fair Work say is rife with ongoing noncompliance.

The sting comes after the recent tackling of high-profile figures including George Calombaris, Heston Blumenthal, Neil Perry and Guillaume Brahimi, with Calmobaris (pictured) found to have underpaid 500 workers $7.8 million.

The regulator, which also targeted major food precincts in Adelaide and Perth, said the most common breaches uncovered in the operation were underpayments and a failure to provide pay slips in the prescribed form. A total 608 employees will receive back payments totalling $316,674, with the audit revealing 75 per cent of businesses were breaking the rules in one way or another.

That includes 85 per cent of Melbourne businesses inspected. In response to the breaches, Fair Work issued 46 contravention letters, 38 formal cautions, and 34 infringement notices totalling $32,430 in fines for pay slip and recordkeeping breaches. There were 13 compliance notices requiring $83,058 to be reimbursed to 108 employees.

The compliance activity was the second in a series targeting “cheap-eat” and entertainment strips.

Fair Work said these precincts are characterised by low entry barriers for new businesses, low or no union coverage, exploitation of young and migrant workers, and long trading hours over seven days.

In the first activity, Fair Work found 81 per cent of businesses in Victoria St, Melbourne, were non-compliant.

Fair Work Ombudsman Sandra Parker said the underpayments were disappointing but not surprising.

“Many of the breaches we saw resulted from businesses not understanding their lawful obligations to their workers,” Ms Parker said.

“This is no excuse for underpaying employees so I’d suggest that employers invest in workplace law compliance before we come knocking.”