Fast-food outlet to face court over underpayments

A fast-food outlet in Brisbane’s West End is set to face the Federal Circuit Court for alleged underpayments. The Fair Work Ombudsman alleges that SMC Food Truck Pty Ltd underpaid casual employees between October 2018 and February 2020.

The allegation comes on the back of audits made by the FWO of 44 fast food, café and restaurant businesses in the West End food precinct between December 2018 and March 2020.

The inspector believed casual employees had been underpaid their casual, overtime, weekend and public holiday entitlements under the Fast Food Industry Award 2010 and issued a Compliance Notice to the operator as a result.

However, the company, without reasonable excuse, allegedly failed to comply with the Compliance Notice which required it to calculate and back-pay the workers’ entitlements.

In line with the FWO’s proportionate approach to regulation during the COVID-19 pandemic, the FWO made several attempts to secure voluntary compliance before commencing legal action.

The FWO is seeking a penalty against SMC Food Truck, which can amount to $31,500 maximum. The regulator is also seeking a court order for the company to comply with the Compliance Notice, which includes rectifying any underpayments in full, plus superannuation and interest.