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Chinatown restaurants audit reveals ‘very high’ levels of underpayment: ombudsman

Chinatown businesses have been ripping off staff members, with an ongoing audit of underpayment finding “high levels of noncompliance”.

Chinatown restaurants have been ripping off staff members, with an ongoing audit of underpayment finding “high levels of noncompliance” after investigating two-thirds of outlets - and the Fair Work Ombudsman is stepping in.

Fair Work investigators have so far visited 40 out of about 60 businesses of interest across Chinatown and the Central Market, and have found “very high” noncompliance levels, according to Fair Work Ombudsman Sandra Parker.

Ms Parker said flat pay rates, non-payment of weekend penalties and failures to meet the award had been discovered across multiple restaurants and fast food outlets.

“We’re finding flat rates of pay not being paid, failure to provide award provisions and weekend penalty rates not being paid,” Ms Parker said on radio on Thursday morning.

“Things like pay slips – people aren’t keeping them and they’re not keeping good records.”

She said a specific number could not be provided about how many businesses had been reprimanded, given the early stage of the investigation.

Ms Parker said it was important to make sure “vulnerable” employees in Chinatown, a majority of whom were “Visa workers and young people”, were not being taken advantage of.

“It’s vulnerable workers who are getting ripped off,” she added.

Investigators are speaking with business owners, managers and workers to investigate whether hospitality workers are being paid at award rates.

The current penalties weigh-in at up to $1332 a breach for an individual and up to $6660 a breach for a corporation, according to the FWO website.

The Chinatown audits are part of a national program that has previously targeted cheap eat precincts in Melbourne, Brisbane, Sydney, Adelaide and Perth.

This month, the FWO released its findings of audits targeting popular food precincts in Hobart, with more than $580,000 in unpaid wages recovered for 376 workers.

The crackdown comes after anonymous reports were made to the Fair Work Ombudsman about possible breaches of workplace law by some businesses in the area.

Shocking footage emerged in February of a fight at bubble tea store Fun Tea, in Gouger Street, over alleged wage theft, sparked protests about worker underpayment.

The shop has since reopened with new management.

A large crowd gathers on Moonta Street, Chinatown, for a rally protesting against wage theft and the alleged assault of a worker. Picture: Tricia Watkinson
A large crowd gathers on Moonta Street, Chinatown, for a rally protesting against wage theft and the alleged assault of a worker. Picture: Tricia Watkinson

Original URL: https://www.adelaidenow.com.au/news/south-australia/restaurants-in-chinatown-targeted-by-fair-work-commission-in-underpayment-sting/news-story/a75d26f7b4c60daff69cde9d765cdc9d