Fair Work Ombudsman recovers more than $239,000 from Sydney hospitality sector

April 30, 2023

After investigating employers in Sydney’s hospitality precincts, the Fair Work Ombudsman has recovered $239,505 in wages from 49 businesses across Haymarket, Chinatown, Darling Harbour, Barangaroo, Surry Hills and Darlinghurst.

In the 47 completed investigations, 77% of businesses had breached workplace laws with wages recovered for 333 underpaid workers.

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 36 businesses found to be in breach, 31 had underpaid their workers and 22 had failed to meet pay slip or record-keeping requirements.

The most common breaches found were underpaying minimum hourly rates (30 businesses), followed by failing to pay penalty rates (24 businesses) and breaches of pay slip laws (21 businesses).

Fair Work Ombudsman Sandra Parker said the inspections were part of a national program that has targeted food precincts in Sydney’s Glebe Point Road, Melbourne, Brisbane, the Gold Coast, Adelaide, Darwin, Hobart, Launceston and, most recently, Perth. The program has recovered more than $2 million for workers.

Parker notes “uncovering high levels of non-compliance in Sydney’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 young workers and visa holders 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.”

The largest recovery from one business was $52,081 for 18 casuals and full-time employees.

In response to the breaches, the FWO issued a Compliance Notice each to 31 businesses, recovering $239,505 for 333 workers. There were 27 Infringement Notices issued for pay slip and record-keeping breaches, resulting in $90,354 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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