Cafe served with court date for allegedly “paying” staff with food and drink

food and drink

A Brisbane café is set to face court for alleged workplace breaches, including partially giving staff members food and drink rather than wages.

Set to face the Federal Circuit Court are 63 Racecourse Rd Pty Ltd, which operated the Café 63 Racecourse Rd and the company’s sole director and shareholder, Hamish Watson.

The Fair Work Ombudsman alleged the cafe committed two separate breaches, one in August 2017 and another between November 2017 and January 2018.

The FWO alleges that, in the first breach, employees were underpaid a total of $36,663, denying them various entitlements under the Restaurant Industry Award 2010.

In the second breach, employees were allegedly paid according to Individual Flexibility Agreements (IFAs) that provided for flat hourly rates and “allowances”, instead of penalty rates and overtime rates that they were entitled to under the Restaurant Industry Award 2010. Those “allowances” in the IFAs allegedly included a daily allowance of food and drink up to the value of $35 per day, $20 in meals and $15 in drinks.

The FWO strongly denounced the cafe’s conduct having breached the provision of the Fair Work Act requiring that employees be paid in money, and the fact that Watson was involved in the breaches. It also alleged that 63 Racecourse Rd Pty Ltd breached workplace laws relating to requirements that must be met when entering into IFAs with employees.

Most of the 32 allegedly underpaid workers were visa holders who worked as cooks, kitchen attendants and food and beverage attendants.

“Improving compliance with workplace laws in the fast food, restaurant and cafe sector, which employs many vulnerable workers, continues to be a priority for the Fair Work Ombudsman,” Ombudsman Sandra Parker said. “All workers in Australia have the same rights at work regardless of nationality or visa status.”

The company 63 Racecourse Rd Pty Ltd faces maximum penalties per breach of up to $63,000, while Watson faces maximum penalties per breach of up to $12,600. The FWO is also seeking a court order requiring the company and Watson to back-pay employees in full less any back payments that have already been made.

A directions hearing has been set in the Federal Circuit Court in Brisbane on 16 October 2020.