Sports bar operator faces court for underpayments

Fair pay

The Fair Work Ombudsman has commenced legal action in the Federal Circuit Court against the operators of the Chevron Tavern sports bar, located on the Gold Coast.

The Fair Work Ombudsman has alleged that the company breached the Fair Work Act by failing to comply with a Compliance Notice requiring the company to back-pay six employees a total of $13,417 over a seven-month period back in 2018.

The Compliance Notice also required the company to calculate any outstanding superannuation owing to the employees.

Fair Work Inspectors commenced an investigation into the Chevron Tavern last year after receiving a request for assistance from an employee.

The Compliance Notice was issued earlier this year after a Fair Work Inspector formed a reasonable belief that kitchen and bar staff at the tavern had been underpaid weekend, night and public holiday penalty rates, casual loadings and overtime rates under the Hospitality Industry Award.

Fair Work Ombudsman Sandra Parker says compliance notices are an important tool to recover unpaid wages for workers.

“Under the Fair Work Act, inspectors can issue a compliance notice if they have a reasonable belief that an employer has breached workplace laws. Employers must comply with Compliance Notices unless they decide to challenge a notice in court. We will continue to utilise our full suite of enforcement tools to hold employers to account,” Parker said.

The FWO is seeking a penalty against Chevron Island Tavern Pty Ltd. The company faces a maximum penalty of $31,500.

The FWO is also seeking a Court Order requiring the company to take the action required by the Compliance Notice, including back-paying the allegedly underpaid wages and calculating and back-paying any outstanding superannuation owing to the employees.

A directions hearing has been listed in the Federal Circuit Court in Brisbane for 27 March.