Adelaide’s Chinatown hit in Fair Work Ombudsman wage probe

Tens of thousands of dollars have been repaid to hundreds of workers after almost 50 Chinatown businesses were stung by the workplace watchdog.

More than $180,000 in wages has been recovered from Adelaide’s Chinatown businesses for 306 underpaid workers, after an audit by the Fair Work Ombudsman.

Inspectors visited 58 businesses unannounced in the precinct and surrounding areas, finding 48 establishments, or 83 per cent, had failed to comply with workplace laws.

The investigation, conducted over four days in April, looked into fast food, restaurants and cafes that “typically employ a high proportion of young and migrant … workers”.

Wages totalling $189,316 were recovered from 42 businesses for 306 employees, including $32,835 for one employee with an annualised salary issue.

Fair Work Ombudsman Sandra Parker said the investigation joined several other audits around the country, including Melbourne, Brisbane and Sydney.

“It is disappointing to consistently find high rates of noncompliance in the fast food, restaurant and cafes sector,” Ms Parker said.

“Employers can’t pick and choose which wage laws they follow and those doing the wrong thing are being found out.

“Protecting vulnerable workers such as visa holders and improving compliance in the sector are ongoing priorities for the Fair Work Ombudsman.”

Businesses across Chinatown were found to be breaking financial laws. Picture: Tom Huntley

The Adelaide audit targeted businesses with prior history of FWO noncompliance, anonymous tip offs and employment of vulnerable migrant workers.

Of the businesses found to be non-compliant with workplace laws, 24 did not pay staff correctly, which included paying penalty rate sand the minimum hourly rate.

A further six did not keep accurate pay slips and 18 breached both monetary and non-monetary obligations, such as not including required information on pay slips.

Inspectors also issued 31 infringement notices to businesses, with $31,296 paid in fines, and three were issued contravention letters.

One business is still under investigation.

While another business rectified payments of $768 to five employees at the time of the visits, without inspectors need to investigate further.

Information was gathered by inspectors through staff interviews, requesting payroll records and observing workplace behaviour.

The audit follows an Adelaide bubble tea shore chain at the centre of an investigation into wage theft going into liquidation on November 19.

The Fair Work Ombudsman had launched legal action against Yuxuan Group, which operated FunTea stores on Gouger St, York St and Rundle Mall, for allegedly ripping off 20 works nearly $187,000.