Fair Work Ombudsman inspectors dispatched to Melbourne laneway cafes

The workplace watchdog is today raiding more than 40 cafes in two iconic Melbourne laneways after allegations emerged of widespread underpayment.

At least 40 businesses on Degraves St and Hardware Lane face surprise audits. Picture: Jason Edwards

The workplace watchdog is today raiding cafes in the popular dining strips Degraves St and Hardware Lane after allegations emerged of widespread underpayment.

At least 40 businesses on the two cafe strips face surprise audits, with inspectors from the Fair Work Ombudsman being dispatched to make sure workers are not being short-changed.

The Herald Sun revealed in October at least five cafes and restaurants on Melbourne’s famous laneway, Degraves St, had been accused of ripping off their workers in a major underpayment claim.

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The Fair Work Ombudsman is today targeting restaurants and cafes in Degraves St and Hardware Lane with “unannounced workplace audits”.

Fair Work inspectors are in the area speaking to business owners, managers and employees to check that workers are being paid correctly.

Inspectors from the Fair Work Ombudsman apeak to a worker. Picture: Jason Edward

Fair Work Ombudsman Sandra Parker said the audits were the latest in a string of proactive compliance activities targeting popular food hubs.

“Protecting the rights of vulnerable workers in the fast food, restaurant and cafe sector is a priority for the Fair Work Ombudsman,” Ms Parker said.

“Successive activities in popular food precincts across Australia have revealed unacceptable breaches of workplace laws.

“Our audits have established a link between prices and wage underpayments and it is clear that the true cost of cheap food may be the employees’ lawful entitlements.

“We will take enforcement action if today’s audits find serious breaches of workplace laws.”

According to an underpayment claim made to the workplace watchdog, a worker at one eatery on Degraves St was allegedly paid $11 an hour.

Pay slips, bank account transfers, rosters and photos of cash payments — obtained by the Herald Sun — suggest workers have been underpaid at least $50,000.

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