By Robby Magyar
As part of a national program to audit ‘cheap eats’ precincts around the country, the Fair Work Ombudsman (FWO) has recouped $215,707 in lost wages for 446 workers in and around Southport and Broadbeach, on the Gold Coast.
Known for employing a high proportion of young and migrant workers, food precincts are being targeted by Fair Work Inspectors due to concerns of vulnerable workers being exploited.
This latest sting, which found 44 of the 50 businesses investigated had failed to comply with workplace laws and 34 had underpaid staff, is proving the concerns of the FWO correct.
The most common instances of underpayment were due to failure to pay penalty rates (22 businesses) and failure to pay minimum rates for ordinary hours (8 businesses).
Fair Work Ombudsman Sandra Parker said: “Protecting vulnerable workers such as visa holders and improving compliance in the fast food, restaurants and cafés sector are ongoing priorities.”
It is understood that further audits are occurring across the country in cheap eat precincts, because of the intelligence gathering of the FWO.
This is a timely reminder for all employers to ensure they are paying their employees the correct wages and entitlements. Not only is it the right thing to do, but there are also considerable penalties that can apply for non-compliance, which are currently up to $63,000 per contravention for the business and $12,600 per contravention for each individual found to be accessorily liable for the contravention, with potential tenfold penalties for ‘serious contraventions’ (those which are knowingly committed and part of a systematic pattern of conduct).
If you’re an HR Assured client and have questions about the correct wage rates for your employees, contact our 24/7 Telephone Advisory Service.
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Robby Magyar is a Workplace Relations Consultant at HR Assured, who has been assisting clients across Australia from a range of industries and businesses with their work-related COVID-19 questions.