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The FWO secures penalties against hospitality businesses during focus on vulnerable workers.
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Two food outlets fined for underpaying casuals
26 July 2022
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The Fair Work Ombudsman has secured penalties against two small-food businesses found to have underpaid workers, with one being fined for the second time.
The Federal Circuit and Family Court imposed a $4,620 penalty against Ziad Andary, who formerly operated a takeaway business called Valley Pizza in Nuriootpa, South Australia.
The court found Mr Andary had failed to honour back-pay entitlements to a young casual worker, employed between December 2018 and August 2019, despite a compliance notice.
The court also ordered Mr Andary to rectify the underpayments in full, plus interest and superannuation, that the worker was entitled to under the Fast Food Industry Award 2010.
Judge Brown found that the matter involved deliberate non-compliance affecting a vulnerable worker, who was sometimes “largely homeless” during the employment period.
“Occasionally, as he had been kicked out of his previous accommodation, (the worker) would stay overnight at the business, in a backroom, due to him being largely homeless, otherwise he was couch surfing,” Judge Brown said.
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Judge Brown said there was a need to deter Mr Andary and other employers from similar conduct.
“Mr Andary is, in effect, thumbing his nose, at the FWO and its legislatively justified attempts to ensure that an employee, employed in an industry which is rife with exploitation through underpayment, receives his just entitlements,” Judge Brown said.
It is the second time the FWO has secured a penalty in court against Mr Andary following a $3,500 fine last year for underpaying another worker formerly employed at Valley Pizza.
The FWO has also secured court orders for nearly $9,000 in penalties and back-pay against the operator of Wildernis Cafe and Bar in Palm Beach, Queensland.
Wildernis Pty Ltd, which operates the café, was fined $5,000 by the Federal Circuit and Family Court for failing to back-pay a cook employed at the café from May 2019 to April 2020.
In addition to the penalty, the court has ordered the company to pay the worker $3,992.55 in outstanding entitlements under the Restaurant Industry Award 2010 and the Fair Work Act’s National Employment Standards owed, plus interest and superannuation.
The total amount owed to the worker was $7,985.10 and Wildernis Pty Ltd back-paid the worker $3,992.55 in three payments after the FWO commenced legal action.
Fair Work Ombudsman Sandra Parker said business operators that fail to act on compliance notices needed to be aware they could face court-imposed penalties on top of having to back-pay workers and expressed concern at the repeat offence by Mr Andary.
“We have no tolerance for deliberate non-compliance as occurred in this case. It is particularly disappointing to again have to take legal action against this employer – and again secure penalties – to ensure a worker receives all their lawful entitlements,” Ms Parker said.
“Employers also need to be aware that taking action to protect vulnerable workers in the fast food industry 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.”
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