A Chinese restaurant operator based in Ulverstone, Tasmania has been penalised by the court for non-compliance with a Fair Work Ombudsman’s notice ordering it to back pay some of its employees.
The Federal Circuit Court has imposed a $12,000 penalty against the operator of the Jade Willow Chinese Restaurant, Galb Pty Ltd, and a $2,500 penalty against the company’s sole director, Chao Liang for failing to comply with the Compliance Notice requiring the company to calculate and back-pay entitlements for five young employees.
Fair Work Inspectors investigated the restaurant in 2018 after receiving a request for assistance from an employee. The Compliance Notice was issued after a Fair Work Inspector determined that the food and beverage attendants at the restaurant had been underpaid minimum wage rates, weekend and public holiday penalty rates, casual loadings, late night additional payments and minimum two-hour shift pay under the Restaurant Industry Award.
The five employees were paid flat rates of between $8 and $14 an hour.
“We make every effort to secure voluntary compliance with Compliance Notices but where they are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” Fair Work Ombudsman Sandra Parker said.
“Employers also need to be aware that improving compliance in the fast food, restaurant and café sector continues to be a priority for the Fair Work Ombudsman. Any employees with concerns about their pay or entitlements should contact us for free advice and assistance,” Parker added.
Judge Grant Riethmuller noted in his decision that the contraventions resulted in payment delays for young employees and that it was “only after proceedings were commenced to prosecute the respondents for failing to comply with the notices that the payments were made, some 18 months after the Compliance Notice”.
Judge Riethmuller also noted that “a subsequent underpayment discovered in November 2019 suggests little has changed, despite the respondents saying that systems are now in place to ensure compliance”.
The judge found that it was “most unfortunate” that court proceedings were needed and there was a need to deter others from similar conduct. “It is important that Compliance Notices are taken seriously by employers and not ignored,” he said.
