‘Disappointing findings’: Surprise audit uncovers worker rip-offs

Snap inspections by the independent workplace regulator has revealed the majority of Cairns cheap eats venues investigated were in breach of workplace laws.

A total of 23 businesses or 74 per cent of Cairns cafes and restaurants were found to be in breach of workplace laws. Picture: Jake Nowakowski

Snap inspections by the independent workplace regulator has revealed 74 per cent of Cairns cheap eats venues investigated were in breach of workplace laws.

Fair Work Inspectors investigated 35 businesses in Cairns’ fast food, restaurant and cafe sector in Cairns City, Cairns North, Palm Cove and Trinity Beach.

Businesses were targeted for investigation based on Fair Work intelligence from a range of sources, including anonymous reports.

The audits recovered more than $200,000 for affected workers.

Fair Work Ombudsman Anna Booth said “disappointingly” of 31 investigations finalised the watchdog found 23 businesses or 74 per cent had breached workplace laws.

The most common breaches involved 21 businesses that failed to pay various penalty rates, while 11 businesses were found to have underpaid minimum wages and nine outlets failed to pay the correct allowances.

Anna Booth is the Fair Work Ombudsman. Picture: Paul Hermes

Ms Booth said improving compliance in the fast food, restaurants and cafe sector was an ongoing priority for the regulator.

“These disappointing Cairns findings are part of a national food precincts program where we’ve often found that low-cost dining comes at the expense of workers’ lawful wages,” Ms

Booth said.

“Employers must follow all wage laws, including penalty rates which generally serve as compensation for those working at times when most people are not.

“Those doing the wrong thing are being found out and held to account.

“We want to help businesses in the food sector get it right in the first place.

“We also urge workers with concerns about wages and entitlements to reach out to us – including anonymously if preferred.”

Asked if restaurants are deliberately underpaying workers or making an honest mistakes the Fair Work Ombudsman said employers have an opportunity to fix alleged contraventions before the regulator actions court proceedings.

“We are aware that employers can make mistakes,” she said.

“These audits of fast food outlets, restaurants and cafes in Cairns resulted in compliance notices being issued to employers who had underpaid workers (and) compliance notices are non-punitive.

“However, if we do commence a litigation and the court finds the employer deliberately underpaid workers, penalties can be significantly higher, as was the case in the recent penalties against Sushi Bay.”

The largest amount recovered from any one business was $46,576 for six restaurant employees including cooks, kitchen hands and bar attendants.

These workers were underpaid penalty rates, had outdated rates of pay resulting in underpaid minimum rates, and missed out on overtime pay.

Following investigations, Fair Work issued 23 compliance notices, recovering the $217,806 for the 209 workers.

Eleven infringement notices for pay slip and record-keeping breaches also resulted in $12,895 in fines paid.

Investigations into four businesses are ongoing.

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Originally published as ‘Disappointing findings’: Surprise audit uncovers worker rip-offs