Fair Work Ombudsman crackdown pays $58k back to underpaid hospo workers

A blitz across Melbourne’s southeast has exposed dozens of businesses underpaying more than 100 hospitality workers.

A string of surprise inspections has revealed dozens of businesses in Melbourne southeastern suburbs have been underpaying staff.

After 32 surprise inspections, more than $58,000 in lost wages was recovered by the Fair Work Ombudsman for 121 underpaid employees from Bentleigh, Bentleigh East, Carnegie, Glen Huntly, Caulfield, Caulfield East, Elsternwick and Clayton.

One business was ordered to pay $13,071 back to four workers who had been paid flat rates below the minimum award rate.

Anonymous reports and other resources led to the surprise inspections, where 26 businesses were found to have breached workplace laws, by underpaying staff for ordinary hours of work, underpaying various penalty rates and not keeping accurate time records.

A Fair Work investigation revealed 81 per cent of southeastern hospitality businesses were breaching wage laws.

Following the investigations, 22 compliance notices were issued, recovering thousands of dollars for employees after just $200 was recovered without the use of the enforcement tool.

Fair Work Ombudsman Anna Booth said the high rate of breaches in the southeast was “disappointing”.

“The findings are consistent in the sector nationwide,” she said.

“Employers must follow all wage laws, including paying minimum wages. Those doing the wrong thing are being found out and held to account.”

Ms Booth said employers had a range of resources available to them, as well as free advice to ensure they were meeting their obligations.

She urged workers with wage concerns to reach out, even if anonymously.

Surprise inspections have recovered $58k in wages for employees.

Ms Booth said compliance in the hospitality sector was a priority for Fair Work, alongside other sectors including aged care services, building and construction, disability support services and universities.

“We are targeting these sectors as they are at significant risk of noncompliance with

workplace laws, or have a history of systemic underpayments, or both,” Ms Booth said.

“We are committed to working with these sectors to promote and ensure compliance.”

Fair Work has recovered more than $1.2 million in Melbourne’s hospitality sector.

Businesses in the CBD, Victoria Street, Richmond, and Swanston Street have also been subject to surprise inspections.

Between 2022 and 2023, Fair Work recovered more than $800,000 in court-ordered penalties against hospitality employers.

Advice and assistance in English and other languages for workers and employers can be found on the Fair Work website, or by calling 13 13 94.