Little Cupcakes allegedly underpaid staff more than $57,000
A popular Melbourne cupcake chain has been accused of wage theft, with the workplace watchdog taking legal action over the alleged underpayments which total more than $57,000.
Inner East
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A popular Melborne cupcake chain has been embroiled in a $57,000 wage theft claim.
Little Cupcakes has been accused of short-changing 35 employees at its retail stores in Degraves, William and Queen streets, as well as at its baking facility in Armadale.
It is alleged the workers were underpaid more than $57,000 between January 2018 and February 2019.
Ten of the staff were under 21 and held visas from South Korea, India and Indonesia.
Workers were underpaid amounts ranging from $20 to $10,960 mainly relating to leave loading, weekend penalties and overtime rates.
Fair Work Ombudsman Sandra Parker said the alleged underpayment of “young and vulnerable workers” was particularly concerning.
“Protecting the rights of vulnerable workers in the fast food, restaurant and cafe sector is a priority for the Fair Work Ombudsman,” she said.
“We will continue to enforce workplace laws in a proportionate manner during the COVID-19 pandemic, and hold employers to account in order to protect employees.”
The wage theft scandal was uncovered after several staff members complained to the workplace watchdog.
Shri Krishna Guru Pty Ltd, which operates the three stores, and its director Shreyansh Dharmesh Shah will front court over the allegations.
The company has rectified the alleged underpayments in full but faces penalties of up to $63,000 per contravention.
Mr Shah faces fines of up to $12,600 for each contravention.
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