The Fair Work Ombudsman has recovered $684,543 in wages for 1004 underpaid workers after investigating employers in Melbourne’s food precincts.
During the investigations, the FWO determined that 86 per cent of businesses in the area had breached workplace laws. Of the 71 businesses found to be in breach, 69 had underpaid their workers and 24 had failed to meet payslip or record-keeping requirements.
The most common breaches found were underpaying penalty rates (52 businesses), followed by failing to pay minimum wages including casual loading (51 businesses) and record-keeping issues (17 businesses).
Businesses were selected for surprise inspections based on their risk of breaching workplace laws, especially those with a history of non-compliance with the FWO, had been the subject of anonymous tip-offs, or have employed vulnerable visa holders.
Acting Fair Work Ombudsman Kristen Hannah said the inspections were part of a national program that has targeted food precincts in Melbourne, Brisbane, Sydney, the Gold Coast, Adelaide, Darwin, Hobart, Launceston, Perth and, most recently, Newcastle.
“Uncovering high levels of non-compliance in Melbourne’s fast food, restaurant and café sector, as the FWO has nationwide, is disappointing,” Hannah said. “Employers can’t pick and choose which wage laws they follow and those doing the wrong thing are being found out.
“The Fair Work Ombudsman will continue to prioritise improving compliance in this sector, which we know employs many visa holders and young workers who can be vulnerable,” Hannah added.
In response to the breaches, the FWO issued a Compliance Notice each to 68 businesses, recovering $684,543 for 1004 workers, the largest recovery coming from one business which was $83,272 for 170 employees.
In total 32 Infringement Notices were issued for payslip and record-keeping breaches, resulting in $54,721 in fines paid. Two businesses are still under investigation.
Non-compliant businesses were also warned that any future breaches may lead to higher-level enforcement action by the Fair Work Ombudsman.
