Saffron Gourmet Indian restaurant underpaid staff more than $50k

An investigation into a popular Gold Coast restaurant has revealed it exploited its employees – most of them students – underpaying 22 staffers by a total of more than $50,000.

A FAIR Work Ombudsman investigation into a Gold Coast restaurant has found it underpaid 22 employees more than $50,000 dollars in a five-month period last year.

The FWO has revealed Saffron Indian Gourmet restaurant at Broadbeach paid workers flat hourly rates between $15 and $18.50, ignoring casual loadings and penalty rates between January and May 2018.

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The Ombudsman discovered underpayments to individual workers had ranged from $143 to $9,457 after an anonymous tip-off from an employee alerted investigators.

The majority of affected workers were visa holders, including 14 international students and five temporary work visa holders.

Saffron Indian Gourmet’s Director and Manager Sridhar Penumechchu has entered a Court Enforceable Undertaking to significantly improve the restaurant’s workplace practices.

Saffron Indian Gourmet, Broadbeach’s Director and Manager Sridhar Penumechchu, in 2008.

Back-payments of the $54,470 sum owed to workers have already commenced.

A further $25,000 donation to the Gold Coast Legal Centre in addition to the hefty back-payments bill should serve as a warning to all businesses, Fair Work Ombudsman Sandra Parker said.

“All workers in Australia have the same workplace rights, regardless of their citizenship or visa status,” Ms Parker said.

“If you know a workplace that isn’t doing the right thing but don’t want to get involved, you can report it to us anonymously in English or 16 other languages.

“In this matter, one tip-off to the Fair Work Ombudsman led to one employer back-paying 22 employees over $50,000.”

Australia’s Fair Work Ombudsman, Sandra Parker. Picture: Gary Ramage

The restaurant must also engage an external professional to complete two audits of the pay and conditions of all employees; commission workplace relations training for all managers, payroll and human resource staff; and demonstrate how it is complying with the Fair Work Act.

To make an anonymous tip-off, contact the Fair Work Ombudsman by following this link. https://www.fairwork.gov.au/how-we-will-help/how-we-help-you/anonymous-tipoff.