Investigations found 68% of food outlets breached workplace laws
The Fair Work Ombudsman (FWO) has successfully recovered $223,107 for 447 underpaid employees in the fast food, restaurant, and café sector on the Sunshine Coast. According to a news release, this follows a series of surprise inspections by Fair Work inspectors.
The inspections targeted 21 businesses in the Noosa Shire food precincts, encompassing Noosa Heads, Sunrise Beach, and Noosaville. These inspections were initiated based on intelligence gathered from various sources, including anonymous reports.
Out of the 19 investigations completed, breaches of workplace laws were discovered in 68% of the food outlets inspected. The FWO noted this translates to 13 businesses found in violation of employment regulations.
The most common violation found was the underpayment or non-payment of penalty rates, affecting 14 businesses. Other significant breaches included failure to pay correct minimum wages for ordinary hours (11 businesses), overtime (six businesses), and leave entitlements (six businesses). Additionally, five businesses were cited for record-keeping breaches.
Fair Work Ombudsman Anna Booth emphasized the importance of compliance in the fast food, restaurant, and café sector, describing the findings as disappointing but not uncommon.
“These disappointing Sunshine Coast findings are part of a national food precincts program where we’ve often found that low-cost dining comes at the expense of workers’ lawful wages,” Booth said.
She stressed the necessity for employers to adhere to wage laws, including penalty rates which compensate employees working during unconventional hours. “Employers must follow all wage laws, including penalty rates which generally serve as compensation for those working at times when most people are not. Those doing the wrong thing are being found out and held to account,” Booth stated.
Ensuring fair compensation for workers
Booth encouraged employers to use the FWO’s free online tools and resources or to seek direct advice to ensure compliance with legal obligations. She also urged workers with wage and entitlement concerns to contact the FWO, even anonymously if preferred.
The largest recovery from a single business amounted to $105,137 for 99 employees, mostly casual wait and kitchen staff. These workers, a mix of adults and juniors, were primarily underpaid for their overtime hours and penalty rates.
The FWO issued 14 Compliance Notices during the investigation, resulting in the recovery of the $223,107 for the affected workers. Additionally, five Infringement Notices for payslip and record-keeping breaches led to $26,650 in fines. One business remains under investigation.
The news release noted this Sunshine Coast initiative is part of a broader national program that has previously targeted eateries in major cities across Australia, including Melbourne, Brisbane, Sydney, and Perth. In the 2022-23 fiscal year, the FWO secured over $800,000 in court-ordered penalties against food sector employers.
The FWO provides interactive tools to assist both employers and employees in the fast food, restaurant, and café sector. Employers can utilize the FWO’s pay calculator and Small Business Showcase. The FWO also offers resources for visa holder workers, ensuring they have the same workplace rights as other employees.
For more information, employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94. Follow the Fair Work Ombudsman on social media or sign up for direct email updates from www.fairwork.gov.au/emailupdates.
