'Employers can't pick and choose which wage laws they follow,' says FWO
Workers of Darwin food precincts have been back-paid with $393,453 in wages after the Fair Work Ombudsman (FWO) commenced a surprise inspection on a series of food businesses.
Based on FWO’s media release, the independent statutory agency, which targeted 48 businesses across 22 suburbs, including Darwin City, Casuarina, and Palmerston City, found that 76% of the industries were non-compliant with workplace laws.
It further said that the office targeted businesses for surprise investigation depending on their risk of violating workplace laws, with at-risk companies having a history of “non-compliance with the FWO, had been the subject of anonymous tip-offs or employed vulnerable visa holders.”
“Of the 34 businesses found to be in breach, 31 had underpaid their workers and 10 had failed to meet pay slip and record-keeping requirements,” the agency said.
According to reports, the inability to pay penalty rates or casual loading was the most common breach with 28 violating businesses, followed by underpayment of the minimum hourly rate of pay with 13 businesses, and the failure to pay proper overtime allowances with 13 breaching companies.
“In response to the breaches, the FWO issued a Compliance Notice each to 32 businesses, recovering $390,177 for 465 workers,” the FWO said.
“There were 10 Infringement Notices issued for pay slip and record-keeping breaches, resulting in $12,792 in fines paid,” it added, noting that three businesses are still under investigation.
Overall, Darwin businesses back paid 479 employees, with the FWO having the largest recovery of $94,687 from one employer that underpaid 15 casual and part-time employees their minimum wages and weekend penalties.
According to the Fair Work Ombudsman Sandra Parker, the inspections were part of a national program aimed at food precincts in “Melbourne, Brisbane, Sydney, the Gold Coast, Perth, Adelaide, Hobart, and Launceston.”
Following the case, Parker expressed her disappointment with the high rates of non-compliance in Darwin’s food precincts, noting that employers can’t just pick what wage laws to follow.
“We will continue to prioritise improving compliance in this sector and protecting vulnerable workers such as visa holders and students who are over-represented,” Parker said.
The FWO likewise warned violating businesses that any other future breaches could lead to a stricter form of enforcement action by the agency.
“Employers can use our free tools and resources if they need assistance meeting their obligations,” Parker said. “Workers with concerns about their pay or entitlement should come forward for help.”
FWO has a range of interactive tools that could assist employers and employees in the fast food, restaurant, and café sector, as well as franchisees, including “information on the new annualised wage arrangements rules under the Restaurant Award and Hospitality Award,” according to the FWO.
