Pizza company accused of discriminating against migrant staff

A Crust Gourmet Pizza franchise outlet in Hobart allegedly discriminated against four overseas workers by paying them significantly less than Australian employees.

Consequently, QHA Foods Pty Ltd, which operates the Crust outlet on Elizabeth Street in North Hobart, is facing the Federal Circuit Court.

Moreover, two of the company’s directors and shareholders, Anandh Kumarasamy and Haridas Raghuram, are also facing the Court.

The Fair Work Ombudsman (FW0) alleges QHA Foods, Kumarasamy and Raghuram committed several breaches of workplace laws, including the provision of the Fair Work Act that makes it unlawful to discriminate against employees based on their nationality.

Ombudsman Sandra Parker said the regulator investigated after receiving a request for assistance from an overseas worker.

“We allege that four migrant workers were paid significantly less than other staff at a Crust pizza franchisee because they were not Australian,” said Parker.

“Migrant workers have the same rights and entitlements as Australian workers and must be paid according to our national awards.”

The discrimination allegation relates to three Bangladeshi nationals and one Indian national who were allegedly underpaid a total of $9,926 for work performed from January to July 2016.

The four workers, who were in Australia on student visas at the time, performed duties including making and garnishing pizzas, delivery driving, serving customers and cleaning. It is alleged the four workers were paid a flat hourly rate of $12 for all hours worked, plus $1 per pizza delivery, resulting in significant underpayment of the ordinary hourly rates, casual and evening loadings and penalty rates for weekend and public holiday work they were entitled to under the Fast Food Industry Award.

It is also alleged that the four workers were paid in cash and were not provided with pay slips, in breach of workplace laws.

However, it is alleged that Australian employees at the outlet were paid higher minimum rates of pay and penalty rates, including being paid penalty rates for weekend and public holiday work and a cents-per-kilometre rate for deliveries.

Indeed, six of the adult Australian employees were paid ordinary rates of more than $18 an hour and three were paid penalty rates of up to $46.31 on public holidays. These workers were allegedly also paid into their bank accounts and provided with pay slips.

It is also alleged that the incorrect application of some provisions in the Award resulted in 10 Australian workers being underpaid a total of $6,252. The foreign workers and all Australian workers have been back-paid in full.

Moreover, QHA Foods, Kumarasamy and Raghuram also allegedly breached workplace laws during the investigation by providing inspectors with records that had been changed by the deletion of the record of hours worked by the four overseas workers.

QHA Foods Pty Ltd faces maximum penalties of up to $54,000 per breach and Kumarasamy and Raghuram face penalties of up to $10,800 per breach.

The FWO is also seeking a Court Order requiring QHA Foods to commission workplace relations training for managerial staff.

Parker said it was concerning that the case again involved operators allegedly breaching the workplace rights of an employee from the same cultural background.

“Employers should note that we are prioritising matters involving requests for assistance from migrant workers as they can be particularly vulnerable in the workplace and reluctant to complain,” said Parker.

“We encourage any workers with concerns about their wages or entitlements to contact the FWO.”