Fair Work Ombudsman recovers $400,000 in stolen wages in Darwin and Palmerston

Is your favourite restaurant paying their workers? A Fair Work Ombudsman bust in Darwin and Palmerston has revealed the extent of wage theft.

Nearly $400,000 in stolen wages has been recovered for exploited worker in Darwin and Palmerston cafes, bars, restaurants and takeaway joints.

Three-quarters of food businesses inspected by the Fair Work Ombudsman failed to meet workplace laws, including underpaying workers, not paying overtime, or recording requirements.

The inspectors targeted 48 businesses across 22 suburbs, including Darwin City, Casuarina and Palmerston City in September 2021.

Businesses were selected for surprise inspections based on their risk of breaching workplace laws such as a history of noncompliance, anonymous tip-offs, or employed vulnerable visa holders.

Investigators found 76 per cent of businesses were non-compliant, with 34 businesses in breach.

Fair Work ombudsman Sandra Parker. Aaron Francis/The Australian

Workers were being underpaid in 31 stores, while 10 had failed to meet payslip and record-keeping requirements.

The most common breaches was failing to pay penalty rates or casual loading, with 28 businesses not meeting this obligation.

Workers were not being paid the minimum hourly rate of pay at 13 businesses, while the same number also failed to pay correct overtime allowances.

The Fair Work Ombudsman has recovered $393,453 in wages for 479 underpaid workers after the investigation.

One business alone had to repay $94,687 to 15 casual and part-time employees who had been underpaid their minimum wages and weekend penalties.

The Ombudsman issued compliance notices to 32 businesses and 10 infringement notices for pay slip and record-keeping breaches. It also issued $12,792 in fines.

Three businesses remain under investigation.

Ombudsman Sandra Parker said the audits were part of a national program to target food precincts in major cities across the country.

“It is disappointing to find high rates of noncompliance in Darwin’s fast food, restaurant and cafe sector, something that has been found in many cities nationally,” Ms Parker said.

“Employers can’t pick and choose which wage laws they follow and those doing the wrong thing are being found out”

Ms Parker said her department could continue to monitor the sector to protect vulnerable workers, such as visa holders and students who were over-represented in wage theft cases.