The Fair Work Ombudsman has recovered $121,574 in wages for 144 underpaid workers in Launceston’s food precincts as the result of the investigation made by Fair Work Inspectors on 31 businesses across nine suburbs and nearby towns in and around Launceston, which found 77 per cent of businesses had breached workplace laws.
The investigation found 24 businesses to be in breach, 23 of which had underpaid their workers. Seven of them had failed to meet pay slip and record-keeping requirements. The most common breaches found were the failure to pay penalty rates (19 businesses), followed by underpayment of the minimum hourly rate of pay (18 businesses) and the failure to pay correct leave allowances (seven businesses).
The food precincts in the Launceston area were the target of surprise inspections by the FWO based on their risk of breaching workplace laws. Fair Work Ombudsman Sandra Parker said the inspections were part of a national program that has targeted food precincts in Hobart, Melbourne, Brisbane, Sydney, the Gold Coast, Perth, Adelaide and Darwin and recovered more than $2 million for workers.
“Uncovering high levels of non-compliance in Launceston’s fast food, restaurant and café sector, as the FWO has nationwide, is disappointing,” Parker said. “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 and protecting the rights of vulnerable workers, including visa holders and the young. Employers can use our free tools and resources if they need assistance meeting their obligations,” she added. “Workers with concerns about their pay or entitlement should come forward for help.”
In response to the breaches, the FWO issued a Compliance Notice to 22 businesses, recovering $117,199 for 142 workers. There were seven Infringement Notices issued for pay slip and record-keeping breaches, resulting in $9988 paid in fines. Matters are ongoing in relation to two businesses.
The largest recovery from one business was $39,432 for 26 casual or full-time employees who had been underpaid their minimum wages and overtime, late night, weekend and public holiday rates.
Non-compliant businesses were told that any future breaches may lead to higher-level enforcement action by the Fair Work Ombudsman. Visa holders and young workers were found among both non-compliant and compliant businesses.
