Justice for waiters and cooks who were underpaid at well known Melbourne laneway cafe
The former operators of a popular Melbourne cafe who underpaid staff have been forced to fork out for court fines and employee back payments.
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Former operators of a popular CBD cafe who underpaid staff have been forced to pay more than $42,000 in court fines and employee back-payments.
Aisha & Umma Enterprises, that once operated RMB cafe on Degraves St, breached Fair Work orders that required them to calculate how much they owed 13 staff in underpayments.
The workplace watchdog first ordered the operators to pay back staff minimum wage and penalty rates in 2020.
The underpaid staff members worked at RMB Cafe as front of house workers and cooks between May 2017 and August 2019.
Judge Catherine Symons said four of the 13 workers were still owed a “not insubstantial” $4000.
Judge Symons labelled the business operator’s failure to comply as “a mischief to which general deterrence can and should appropriately be directed”.
“I also accept that there is some evidence that supports a greater need for general deterrence when the case is one that concerns a business that operates (or operated) in the cafe and restaurant industry,” Judge Symons said.
The company was ordered to pay the workers more than $27,000 that they are still owed, as well as superannuation and interest.
The Federal Circuit and Family Court also imposed a $15,125 penalty for failing to comply with the initial order to pay back the workers.
It comes after an investigation began in 2018 as part of a Fair Work audit into Melbourne’s food precincts.
Fair Work Ombudsman Sandra Parker said any business can be forced to make back payments to workers if they do not follow orders from the workplace body.
“When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” she said.
“Employers also need to be aware that taking action to improve compliance in the fast food, restaurant and cafe sector is an enduring priority for the FWO.
“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”