NewsBite

Coffee Club Blacktown operators forced to pay back migrant worker $36k

The cafe has admitted to underpaying the Korean national more than $36,000 over two years.

The operators of a Blacktown cafe have been ordered to backpay a former waitress close to $37,000 after they underpaid the migrant worker for more than two years.

Coffee Club Blacktown, operated by Sean and Eddy Pty Ltd, has admitted to breaching workplace laws after paying the Korean national flat hourly rates between September 2016 and October 2018, resulting in an underpayment of $36,745.

The Fair Work Ombudsman claims the cafe operators paid the worker flat hourly rates of between $10 and $15.50, despite being entitled to ordinary hourly rates and casual loading on weekends and public holidays of up to $50 an hour.

The company has admitted to not paying the worker super, issuing pay slips or keeping employment records.

At the time of her employment, the worker was in Australia on a working holiday visa and later a student visa and contacted the ombudsman, which sparked an investigation.

The operators of The Coffee Club in Blacktown have been ordered to repay a migrant worker more than $36,000.
The operators of The Coffee Club in Blacktown have been ordered to repay a migrant worker more than $36,000.

The company and sole director Ji Hae Hong have signed a court-enforceable undertaking with the ombudsman. As part of the undertaking, the cafe is required to have all employee entitlements for 2019-2020 checked by an independent external auditor.

Ms Hong is required to write a letter of apology to the worker and place a notice in the Blacktown Advocate.

The ombudsman’s Sandra Parker said the company would face ongoing scrutiny from inspectors.

“The Fair Work Ombudsman has no tolerance for employers who pay migrant workers flat rates that are below the pay they are lawfully entitled to under the relevant award,” Ms Parker said.

“Migrant workers can be particularly vulnerable due to their visa status but are entitled to the same pay as any other worker.

“Improving compliance with workplace laws among franchises in the fast food, restaurant and café sector is a priority. We encourage any Coffee Club employees with pay concerns, or franchisees seeking help with their workplace obligations, to contact us for free advice and assistance.

“The Fair Work Ombudsman will closely monitor compliance with the Court-Enforceable Undertaking and will not hesitate to litigate if there are further breaches of workplace laws.”

In addition to back paying staff, the company will make a $3000 payment to the Commonwealth Government’s Consolidated Revenue Fund.

Just last month, the ombudsman filed legal action against a Coffee Club at Westfield Geelong after they allegedly underpaid two young workers and provided false or misleading pay slips to Fair Work inspectors.

In 2017, the ombudsman penalised a former Coffee Club franchise in Brisbane more than $180,000 after they ordered an overseas worker $18,000 of his wage through an unlawful cashback payment.

Add your comment to this story

To join the conversation, please Don't have an account? Register

Join the conversation, you are commenting as Logout

Original URL: https://www.dailytelegraph.com.au/newslocal/blacktown-advocate/coffee-club-blacktown-operators-forced-to-pay-back-migrant-worker-36k/news-story/b3180c5e7d3bbdde1de0c1f608af37fa