Fair Work Ombudsman alleges Little Cupcakes underpaid workers more than $57K

A popular Melbourne cupcake chain has been accused of short-changing their workers in a major underpayment claim made to the workplace watchdog.

A popular cupcake retailer in Melbourne’s CBD has been accused of short-changing its workers in a major underpayment claim made to the workplace watchdog.

The Fair Work Ombudsman alleged 35 employees who worked across Little Cupcakes stores on Degraves, William and Queen streets – and its baking facility in Armadale – between January 2018 and February 2019 were underpaid a total just over $57,000.

Ten of the workers were aged under 21, with most of them visa holders from South Korea, India and Indonesia.

Employees were also allegedly underpaid leave loadings, minimum-engagement pay, minimum hourly rates and loadings for weekend, public holiday, evening and overtime work under the Award.

Fair Work Ombudsman’s Sandra Parker said the alleged underpayment of young and vulnerable workers was “particularly concerning”.

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

“We will continue to enforce workplace laws in a proportionate manner during the COVID-19 pandemic, and hold employers to account in order to protect employees.”

Fair Work Ombudsman has made unannounced inspections at cafes and restaurants in Melbourne’s popular dining strips.

Shri Krishna Guru Pty Ltd, which operates three Little Cupcakes retail stores, is facing court, with the company director Shreyansh Dharmesh Shah also set to go before a Judge.

The company has rectified the alleged underpayments in full and face penalties of up to $63,000 per contravention, while Mr Shah faces penalties of up to $12,600 per contravention.

A directions hearing was listed in the Federal Circuit Court for July 31.

Fair Work Inspectors audited Shri Krishna Guru as part of an operation targeting restaurants and cafes in Melbourne’s popular Degraves St and Hardware Lane.