Restaurant fined for failing to back-pay cook

restaurant, cook

The Federal Circuit Court has issued a $26,460 penalty to a Darwin restaurant for failing to comply with a Compliance Notice that was issued to it by the Fair Work Ombudsman.

FMS Holdings Pty Ltd, the operator of Bar.B.Q Tonight NT, was fined $22,050 and the company’s sole director, Rana Ali Hassan, an additional $4410 for failing to comply with a Compliance Notice requiring the company to back-pay a cook a total of $15,833.31. The restaurant operator was also ordered to fully rectify the underpayments detailed in the notice, plus interest.

Fair Work Ombudsman Sandra Parker said the outcome reinforced the importance of Compliance Notices in helping the FWO recover wages for underpaid workers.

“Compliance Notices are an important tool we use to get unpaid wages back into workers’ pockets in a timely manner,” Parker said.

“If employers do not comply with Compliance Notices, they can clearly face court-imposed fines, in addition to the initial wages back-payment bill. We encourage any worker with concerns about their pay and entitlements to contact us for free assistance.”

Fair Work Inspectors previously conducted an investigation into FMS Holdings following a request for assistance from the cook, who was a migrant worker from Pakistan. The Compliance Notice issued to the restaurant operator related to underpayments of the employee’s minimum wage, late-night, weekend and public holiday penalty rates, split shift allowances, annual leave on termination, and minimum notice of termination or payment in lieu of notice under the Restaurant Industry Award 2010 and the Fair Work Act 2009.

FMS Holdings and Hassan initially agreed to a repayment plan to rectify the underpayments. However, only $1250 of the outstanding amount was repaid, forcing the FWO to commence legal action late last year.