Fair Work investigate Gami Chicken and Beer amid underpayment claims
A popular Korean fried chicken chain is in hot water after claims of underpayment from its own employees. Fair Work is investigating and the franchise says its “deeply concerned” with the allegations.
Outer East
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The owners of popular Westfield Knox eatery Gami Chicken and Beer will be forced to display proof they are providing workers with correct wages and entitlements.
It comes after the Fair Work Ombudsman received 20 inquiries and anonymous reports from employees of the $16 million chicken and beer business, claiming underpayments, including of penalty rates, and failure to provide pay slips.
The Fair Work Ombudsman will also investigate other stores across the city owned by both franchisees and the franchisor to check their compliance with Australia’s workplace laws.
Fair Work Ombudsman inspectors dispatched to Melbourne laneway cafes
Fair Work Ombudsman takes legal action over alleged underpayment of workers
The Fair Work Ombudsman’s Sandra Parker said Gami Chicken and Beer staff were potentially vulnerable due to their age, cultural background or visa status.
“It is important for us to talk with these workers on the ground so they are aware of their workplace rights and that we can help them,” she said.
“Australia’s minimum pay rates are not negotiable and employers in the fast food, restaurant and cafe sector should actively check that they are paying their staff correctly.
“Franchisors must also take responsibility for ensuring that their franchisees are complying with workplace laws.”
Gami Chicken and Beer said they were “deeply concerned” with the allegations.
“The allegations raised by employees at some of our GAMI stores with the Fair Trade Ombsudman have only been recently brought to our attention,” a spokesperson said.
“At GAMI Chicken & Beer, we place paramount importance on treating all our employees fairly and equally.
“We are committed to ensuring that all our stores and our franchisees operate with the utmost integrity and represent our brand appropriately.
“We are currently looking into the allegations internally and will also take every step to assist the Fair Work Ombudsman’s Office in its investigation on this matter.”
Gami Chicken and Beer also has locations in Narre Warren, Cheltenham, Box Hill, Ringwood, Carnegie, Fitzroy, Hawthorn, Doncaster, Epping, Maribyrnong, Chadstone and Melbourne CBD.
The Fair Work Ombudsman was inundated with requests for help in the last financial year, with 18 per cent of workplace disputes recorded, a third of court actions and almost 40 per cent of all anonymous reports, despite representing just seven per cent of the workforce.
More than $4 million was recovered by the ombudsman for workers from fast food, restaurant and cafe businesses.
A report on the operation’s findings will be published once investigations are completed.
Gami Chicken and Beer was founded in 2006 and began franchising in 2015, with restaurants now in Melbourne, Sydney, Perth and Canberra.
The business has promoted opportunities for new locations to open soon in Brisbane and Adelaide.
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