Degani Bakery and Cafe ordered to repay staff after Fair Work Ombudsman probe
A MELBOURNE bakery and cafe chain underpaid employees at nearly all its outlets, a sweeping Fair Work investigation has revealed, with the company ordered to repay workers $44,000.
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A MELBOURNE bakery and cafe chain underpaid employees at nearly all its outlets, a sweeping Fair Work investigation has revealed, with the company ordered to repay workers $44,000.
In a sweeping investigation into 14 Degani Bakery and Cafe outlets across Melbourne and two in Queensland, the ombudsman found all but one were flouting workplace laws and short-changing employees.
Ten formal warnings, eight compliance notices and five on-the-spot fines were issued.
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A “high number” of complaints prompted the investigation, according to Fair Work ombudsman Sandra Parker.
But the probe is not over yet, with the Ombudsman to take the part-owner and manager of the Greensborough franchise, Sajid Amin, to the Federal Circuit Court after he allegedly used false records to conceal more than $12,000 in underpayments to staff.
It will be alleged 15 employees at Degani Greenvale were ripped off $12,506 during a nine-week period between September and November 2016.
The largest underpayment was of a 19-year-old who was paid as low as $15 an hour despite being entitled to base rates including casual loading of $20.09, weekend rates of up to $24.11 and up to $40.18 on public holidays.
Mr Amin faces maximum penalties of up to $10,800 for each breach.
Ms Parker said recent law changes mean franchisors could now be held liable for workplace breaches by businesses in their networks.
“This report reinforces the need for industry-wide cultural change and hospitality leaders should work with the FWO to support compliance,” Ms Parker said.
Mr Amin didn’t return the Leader’s calls before deadline.
The hearing will begin on October 1, 2018.
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