Operator penalised for underpayment, not complying with Compliance Notice
The Federal Circuit and Family Court has found that the former operator of a western Sydney restaurant underpaid one of its former casual employees approximately $5,200.
The King's Fusion Pty Ltd, which operated Bayt Al Tanoor restaurant in Yagoona, underpaid the former casual food and beverage attendant between March and June 2021, according to the court.
Judge Brana Obradovic said the underpayment of "such a significant amount arose over a short period of time."
"The employee left her employment because she was not being paid properly and thereafter kept missing out on the benefit of her wages as the underpayment has never been made good," Obradovic said.
According to the Fair Work Ombudsman, the employee was underpaid casual minimum wages, overtime entitlements, and weekend penalty rates, owed under the Restaurant Industry Award 2020.
King's Fusion was then penalised in court with $58,275 for its failure to provide pay slips and failing to comply with a Compliance Notice that ordered it to back-pay entitlements to the employee.
According to Obradovic, the operator's failure to back-pay the employee and engage in the proceedings showed a "serious and deliberate disregard" for its obligations.
The operator's failure to provide pay slips also "denied the employee the opportunity to monitor her wages and ensure that they were paid correctly," Obradovic said.
In addition to the penalty, Obradovic ordered King's Fusion to fully back-pay the owed entitlements, plus superannuation and interest, as ordered in the Compliance Notice.
Michael Campbell, acting Fair Work Ombudsman, said they will continue to take legal actions against organisations not following compliance commands.
"Employers who fail to act on these notices risk substantial penalties and back-pay orders," Campbell said in a statement.
"Taking action to improve compliance in the fast food, restaurant and café sector is one of the Fair Work Ombudsman's top priorities," he added.
