Zarraffa’s franchise fined thousands for underpaying worker

A GOLD Coast cafe and its director have been smacked with thousands of dollars in fines for not paying a worker their full entitlements.

Bean Away Pty Ltd, which runs Zarraffa’s Coffee Pacific Pines, and it’s director Gregory Michael Matthew now face a total of $13,986 in penalties because they failed to pay a former store manager the back-pay they were entitled. Bean Away was fined $11,988 while Mr Matthew was personally fined $1998.

Bean Away only back-paid the worker after the Fair Work Ombudsman commenced legal action.

The saga started when Bean Away failed to pay the ex-store manager back-pay earned between February 2019 and March 2021.

Fair Work issued a Compliance Notice in September 2021 requiring Bean Away to pay the entitlements.

When the money was not forthcoming in June, legal action was started.

The Federal Circuit and Family Court this week ordered that Bean Away and Mr Matthew pay the respective fines.

Judge Salvatore Vasta found there was a need to “strike a balance to deter the nonchalant and dismissive behaviour of the Respondents without imposing an oppressive penalty”.

“Deterrence, both specific and general, looms large in this matter,” Judge Vasta said.

Fair Work Ombudsman Sandra Parker said businesses need to be aware that if they do not act on Compliance Notices they can face fines as well as having to pay back workers.

“When Compliance Notices are not followed, we are prepared to take legal action to 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 cafe sector continues to be a priority for the FWO.

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