More than $1.2 million in unpaid wages recovered for food and retail workers in Melbourne and Brisbane

The Fair Work Ombudsman recovered more than $1 million in unpaid wages for food and retail workers prior to the COVID-19 pandemic.

Fair Work Ombudsman Sandra Parker says a lack of awarness is no excuse for not paying workers correctly. Picture: Aaron Francis/The Australian

More than $1.2 million in unpaid wages have been recovered for workers in the fast food, restaurant, cafe and retail sectors prior to COVID-19.

Fair Work inspectors targeted popular food precincts in Melbourne and Brisbane between December 2018 and March 2020 as well as revisiting businesses around the country that previously breached workplace laws.

Forty-nine businesses in Melbourne’s Degraves St and Hardware Lane were investigated, while 44 were inspected in Brisbane’s West End.

The audit found 84 per cent of investigated businesses in Melbourne’s laneways were non-compliant with Australia’s workplace laws and recovered $194,365 for 186 workers.

Fast food, cafe and restaurant businesses in Melbourne’s Hardware Lane (pictured) and Degraves St – now closed due to COVID-19 restrictions – were assessed by the Fair Work Ombudsman. Picture: Alex Coppel

As for Brisbane’s West End, only 12 per cent of the inspected businesses abided by the law, resulting in $309,073 being recovered for 369 workers.

The total underpayments per business ranged from $30 to $59,680 in Melbourne and $377 to $65,215 in Brisbane.

Across the businesses that breached workplace laws in both states, one contravention letter, 19 formal cautions, 51 infringement notices and 42 compliance notices were issued by the Fair Work Ombudsman.

A further 171 food and retail businesses nationally were also assessed; finding a 71 per cent noncompliance rate, with inspectors recovering $709,289 for 796 workers.

According to Fair Work, the most common violation was incorrectly paying penalty rates, followed by underpayments of the minimum hourly wage.

Lack of awareness of all workplace obligations was the most cited reason for noncompliance – 64 per cent across Melbourne and Brisbane and 51 per cent in national investigations.

Fair Work Ombudsman Sandra Parker said the low rates of compliance were unacceptable.

“While we know some of our priority sectors, including many fast food, restaurant and cafe businesses, have been seriously impacted by the COVID-19 pandemic and are under considerable financial strain, we will continue to enforce workplace laws in a proportionate way,” Ms Parker said.

Fair Work Ombudsman Sandra Parker says any employee with concerns about their pay should contact the organisation. Picture: Aaron Francis/The Australian

“We will focus on ensuring that any underpayments of workers are back paid promptly, and where serious noncompliance is found, we will take enforcement action.

“Competitive dining strips commonly rely on workers who are young, students or visa holders. We will continue to protect such vulnerable employees by holding employers to account.”
Ms Parker said a lack of awareness was not a valid excuse.

“The FWO expects all employers to comply with workplace obligations and to access our free tools and resources if they need assistance,” she said.

“Any employees with concerns about their pay should contact us.”

Several businesses remain under investigation and may face legal proceedings.

Other non-compliant businesses were advised future breaches would likely lead to enforcement action.