Fair Work Ombudsman recovers more than $684,000 from Melbourne hospitality sector

July 21, 2023

The Fair Work Ombudsman has recovered $684,543 in wages for 1,004 underpaid workers after investigating employers in Melbourne’s hospitality precincts.

Fair Work Inspectors investigated 84 businesses across Albert Park, Balaclava, Brighton, Elwood, Port Melbourne, Prahran, South Yarra, St Kilda and Windsor in the inner south; and Footscray, West Footscray, Seddon, Yarraville, Newport and Williamstown in the inner west.

In the 82 completed investigations, 86% of businesses had breached workplace laws. Businesses were selected for surprise inspections based on their risk of breaching workplace laws. At-risk businesses had a history of non-compliance with the FWO, had been the subject of anonymous tip-offs, or employed vulnerable visa holders.

Of the 71 businesses found to be in breach, 69 had underpaid their workers and 24 had failed to meet pay slip 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).

Acting Fair Work Ombudsman Kristen Hannah said the inspections were part of a national program that has targeted food precincts in Melbourne’s Degraves Street and Hardware Lane, Brisbane, Sydney, the Gold Coast, Adelaide, Darwin, Hobart, Launceston, Perth and, most recently, Newcastle.

Hannah advises “uncovering high levels of non-compliance in Melbourne’s fast food, restaurant and café sector, as the FWO has nationwide, is disappointing. 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.”

“Employers can use our free tools and resources if they need assistance meeting their obligations. Workers with concerns about their pay or entitlement should come forward for help,” Ms Hannah said.

The largest recovery from one business was $83,272 for 170 employees in St Kilda.

In response to the breaches, the FWO issued a Compliance Notice each to 68 businesses, recovering $684,543 for 1,004 workers. There were 32 Infringement Notices issued for pay slip and record-keeping breaches, resulting in $54,721 in fines paid.

The regulator continues to investigate two businesses. Non-compliant businesses were told that any future breaches may lead to higher-level enforcement action by the Fair Work Ombudsman.

The FWO has interactive tools to help employers and employees in the fast food, restaurant and café sector, as well as for any franchisees. This includes information on the new annualised wage arrangements rules under the Restaurant Award and Hospitality Award.

Small businesses can find targeted resources at the Small Business Showcase.

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20th January 2023 - Rebel Sport among Super Retail Group subsidiaries to be investigated by Fair Work Ombudsman

17th November 2022 - Fair Work Ombudsman penalises resort in regional Western Australia for non payment of staff

14th October 2022 - Fair Work Ombudsman recovers wages for Launceston hospitality workers

12th September 2022 - Fair Work Ombudsman recovers wages for underpaid Darwin hospitality workers

22nd June 2022 - Fair Work Ombudsman makes university and hospitality sectors a priority for 2022/23

17th June 2022 - Fair Work Ombudsman takes former horseriding recreation centre to court

25th May 2022 - Fair Work Ombudsman takes former fitness centre operator to court

25th August 2021 - Fair Work Ombudsman penalises former operators of Big Buoy Waterpark

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