Hotel Frangos and Cafe Koukla operators allegedly underpaid 97 staff

The Fair Work Ombudsman has begun legal action against two Daylesford hoteliers, alleging they underpaid staff more than $320,000 at two venues over about two years.

Hotel Frangos in Daylesford, pictured in 2017. Photo: Visit Victoria

Two Daylesford hoteliers allegedly underpaid their staff more than $320,000 over some two years.

The Fair Work Ombudsman has begun legal action against Louise Maree Melotte and Travis Francis Melotte, who operated Hotel Frangos and Cafe Koukla.

It is not known whether Mr and Ms Melotte are still involved with the businesses.

The ombudsman alleged the couple was involved in underpaying 97 staff a total of $320,929 at the two venues between May 2017 and July 2019, including young workers and international visa holders.

It alleged, for example, that two Nepalese cooks worked an average of almost 50 hours a week without being given proper notice and to the detriment of their health.

Their underpayments were said to be $47,339 and $32,710.

The ombudsman said all alleged underpayments remain outstanding.

“Most of the alleged underpayments relate to 27 full-time employees who were paid salaries that were not sufficient to cover their minimum entitlements under the Hospitality Industry (General) Award 2010,” the ombudsman said in a statement.

“It is alleged the other underpaid staff were casuals who were underpaid entitlements including minimum wage, casual loading, overtime rates, penalty rates, no meal break penalties and minimum engagement pay.”

The Fair Work Ombudsman is seeking penalties and a court order requiring workers to be back-paid in full with superannuation and interest.

Ms Melotte faces penalties of up to $12,600 per breach for multiple alleged underpayment breaches, and both Melottes face the same penalty per breach for alleged unreasonable additional hours breaches.

The company that directly employed the allegedly underpaid workers, Loelal Pty Ltd, of which Mr and Ms Melotte both spent time as the sole director, has been placed into liquidation.

The matter will be heard in Melbourne court in June.