The Fair Work Ombudsman has recovered $769,475 in wages on behalf of 379 underpaid food outlet employees in Perth.
This was the result of the surprise inspections conducted by Fair Work inspectors which targeted 46 businesses in Perth’s fast food, restaurant and café sector last year. The inspections were prompted by intelligence from a range of sources, including anonymous reports.
Of 41 investigations finalised, the FWO found 38 businesses had breached workplace laws, most of whom have underpaid or failed to pay penalty rates for their employees (33 businesses), as well as having failed to pay correct minimum wages for ordinary hours (33 businesses). Meanwhile, 25 businesses had committed both violations and 13 businesses had not met their employees’ leave entitlements.
Fair Work Ombudsman Anna Booth said that improving compliance in the fast food, restaurant and café sector was an ongoing priority for the regulator.
“These disappointing Perth findings are part of a national food precincts program where we’ve often found that low-cost dining comes at the expense of workers’ lawful wages,” Booth said. “Employers must follow all wage laws, including penalty rates which generally serve as compensation for those working at times when most people are not. Those doing the wrong thing are being found out and held to account.”
“Employers should access our wide range of free online tools and resources to ensure they’re meeting their obligations or contact the FWO directly for free advice,” Booth added. “We want to help businesses in the food sector get it right in the first place. We also urge workers with concerns about wages and entitlements to reach out to us, including anonymously if preferred.”
Following investigations, the FWO issued 38 Compliance Notices, recovering $742,658 for 359 workers. Some employers rectified underpayments without the use of an enforcement tool. The highest amount recovered from an employer was $77,673 for 53 employees who had not received the right weekend penalty rates, casual loading and base rates of pay.
The regulator also issued 13 Infringement Notices for payslip and record-keeping breaches, with fines totalling $38,380. The FWO continues to investigate five businesses.
Results are still pending following FWO inspections conducted in northern Perth food outlets in March this year.
The national program of audits has previously targeted eateries in areas such as Melbourne, Brisbane, Sydney, Adelaide, Hobart, Darwin, the Gold Coast, and Canberra. In 2022-23, FWO secured more than $800,000 in court-ordered penalties against food sector employers.
