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Two Queensland shops are fined over $40,000 while a third faces court.
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FWO acts against three food outlets for underpaying staff
21 November 2022
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The FWO has imposed over $40,000 in penalties on two food outlets and commenced legal action against a third as it steps up its compliance crackdown on the sector’s handling of payroll.
The ombudsman has brought legal action against the owner of two Brisbane burger shops which were audited as part of its surprise inspections in December 2021, alleging underpayment of 16 workers.
It claims Barbkey We Pty Ltd, which previously operated DA Burger outlets in West End and New Farm, failed to comply with a notice which required the company to back-pay the workers’ outstanding entitlements.
The company’s sole director Joseph Gerard Barbagallo was also alleged to be involved in the contravention.
The FWO has sought penalties against both the company and Mr Barbagallo, which amount to $33,300 for the business and $6,660 for Mr Barbagallo.
The FWO has also fined Gold Coast coffee and fast food company Zarraffa’s Coffee Pacific Pines, operated by Bean Away Pty Ltd, $13,986 for failing to act on compliance notice.
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The penalty, of which $11,988 was against the firm and $1,998 was against the company’s sole director Gregory Michael Matthew, were imposed after Bean Away’s failure to back-pay entitlements to a worker who was employed between February 2019 and March 2021.
An FWO inspector formed a belief that the worker was not paid her full payment-in-lieu-of-notice of termination entitlements as required by the Fair Work Act.
Bean Away only back-paid the worker the entitlements owed to her after the FWO had commenced legal action.
Judge Salvatore Vasta said there was a need to, “strike a balance to deter the nonchalant and dismissive behaviour of the respondents without imposing an oppressive penalty.”
A Brisbane restaurant that has now ceased trading was also penalised after failing to follow an issued compliance notice.
IP West Pty Ltd operated the London Spice Bulimba restaurant and was fined $28,000 for its failure to obey the notice and was also ordered to back-pay the worker her outstanding entitlements including interest and superannuation.
A fair work inspector issued the compliance notice in November 2021 after it formed the belief that the worker had been underpaid her minimum hourly rate, casual loading, and weekend penalty rates.
The worker who was employed on a casual basis worked as a waitress at the business between November 2020 and August 2021 when she was aged 18–19.
Fair Work Ombudsman Sandra Parker said business operators that fail to act on compliance notices would risk legal action being taken against them and a penalty imposed on top of having to back-pay the workers.
“Employers also need to be aware that taking action to protect young workers and to improve compliance in the fast food, restaurant and cafe sector continue to be priorities for the FWO,” said Ms Parker.
“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”
The action comes after the Fair Work Ombudsman conducted surprise raids on 77 Brisbane food shops earlier this month, uncovering 58 in breach of workplace laws and a total of over $400,000 in unpaid entitlements.
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