Popular Chapel St cafe operator slapped with $10k fine for wage theft
The former operator of a Chapel St cafe in Melbourne’s southeast has been ordered to cough up more than $10,000 in penalties by the workplace watchdog for stealing wages from a migrant worker.
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The former operator of a well-known cafe in Melbourne’s southeast has been slapped with more than $10,000 in fines by the nation’s workplace watchdog for stealing wages from a migrant worker.
Francis Placentino, who used to run popular cafe Tusk, located on Chapel St in Windsor, was fined just under $8000 in a case brought against him by the Fair Work Ombudsman.
The Federal Circuit and Family Court also ordered Mr Placentino’s company Monaco Willows, which used to operate Tusk, to pay $3,610 in compensation to the worker.
The business deducted $3,610 from the worker’s pay slips over the course of their employment – which it described as being for food, coffee and drinks – without the employee’s authorisation.
The worker, who was on a visa, working as a full-time chef between October 2021 and April 2023, was also underpaid minimum wages, public holiday, overtime rates and annual leave entitlements.
During the Fair Work investigation, an inspector issued a compliance notice to the business in September 2023, which required it to calculate and back-pay these entitlements to the worker.
The company did not comply with the order.
The business has since been placed into administration and the cafe has closed.
The court said that while Tusk was no longer operating, Mr Placentino was the director of three other companies.
Judge John O’Sullivan said that a fine was necessary to stop Mr Placentino from committing further breaches and to reinforce that ignoring compliance notices was unacceptable.
“The efficacy of these notices could be undermined if recipients think that a failure to comply has no meaningful consequences,” he said.
Fair Work Ombudsman Anna Booth said unlawful deductions from workers’ wages were unacceptable.
“Deductions are lawful only in a limited range of situations, and employers must understand those laws or they risk facing compliance action,” she said.
Ms Booth said the workplace regulator would persist in pursuing legal action against businesses that fail to comply with compliance notices.
“Where employers do not comply, we will take appropriate action to protect employees,” she said.
“A court can order a business to pay penalties, and to take steps to comply with a compliance notice including calculating and back-paying entitlements.
“Employers should also be aware that taking action to protect migrant workers and improve compliance in the fast food, restaurants and cafes sector are priorities for the Fair Work Ombudsman.”
Originally published as Popular Chapel St cafe operator slapped with $10k fine for wage theft
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