South Yarra’s Gilson Restaurant caught up in staff underpayment scandal
A popular South Yarra restaurant near Melbourne’s famous Royal Botanic Gardens is the latest to be charged with underpaying staff. It faces potential fines of up to tens or even hundreds of thousands of dollars.
Inner East
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Staff at a popular South Yarra restaurant were underpaid and not given proper meal breaks in the latest scandal to rock Melbourne’s hospitality sector.
Gilson Restaurant in Domain Rd, which is rated 3.9 stars from 250 Google reviews, has been charged with underpaying 40 staff a total of $53,850 between December 2017 and June 2018 in an announcement by the Fair Work Ombudsman on Monday.
Affected staff, many of whom were kitchen hands, waiters and cooks and aged in their 20s, were employed on a casual basis.
Ombudsman Sandra Parker alleged they were paid a flat rate of as low as $18 an hour despite working overtime, weekends and public holidays.
And while some staff were paid extra on public holidays, she said investigators found staff were not given proper unpaid meal breaks entitled to them by law.
It was also revealed most of the affected staff were visa holders from non-English speaking countries, and Ms Parker said employees from overseas were particularly vulnerable to unfair workplace practises.
“As we know they can be at risk of exploitation due to their visa status, language barriers and a lack of knowledge of workplace laws,” she said.
James McBride and his company Domain Botanical Business Pty Ltd will face the Federal Circuit Court over the misconduct allegations next month, which were uncovered by Fair Work investigators during an audit.
Domain Botanical Business Pty Ltd faces fines of up to $63,000 for each proven contravention of workplace laws, while Mr McBride could cop a fine of up to $12,600 for each offence.
Gilson Restaurant, which specialises in Italian cuisine, has overwhelmingly positive online reviews, with happy customers complimenting the restaurant’s tasty food and great location across the road from Melbourne’s famous Royal Botanic Gardens.
But one recent visitor slammed waitstaff as “snotty” and threatened to call police because they said coronavirus social distancing requirements weren’t complied with and tables were positioned too close together.
“Snotty staff who expect you to essentially clear your plates and collect your coffees yourself,” Steve Bean wrote.
Other past customers complained the service was slow and prices too high.
Gilson Restaurant staff refused to comment and hung up when the Leader called earlier today.
Ms Parker said she wanted the restaurant to repay what was owed to its employees as well as any interest and unpaid superannuation entitlements.
Fair Work investigators would continue to enforce workplace laws during COVID-19 and she said compliance among cafes, restaurants and fast food outlets remained a big focus.
“The Fair Work Ombudsman prioritises enforcement action for matters involving visa holders and young workers as we know they can be at risk of exploitation,” she said.
“Employers should take note that it is unlawful to pay flat hourly rates if they fail to cover all of a worker’s entitlements including loadings and penalty rates.”
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