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Buffalo's eatery ordered to pay $29k in penalties for underpaying workers

A Cairns business famous for American-style chicken wings has been hit with a hefty fine for short changing migrant workers employed at the Smithfield Shopping Centre outlet.

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The operator of a defunct Smithfield restaurant has been hit with almost $30,000 in fines after being found guilty of underpaying migrant workers.

The Federal Circuit and Family Court ordered the former operator of Smithfield Shopping Centre eatery Buffalo’s to pay $29,970 in penalties for failing to act in accordance with compliance notices relating to back-pay leave entitlements for three workers whose employment ended between April and October 2020.

The workers included a part-time cook, a part-time food and beverage attendant and a full-time operations manager.

Two of the workers were visa holders from Turkey and France.

In addition to penalties, the court ordered Buffalo’s Cairns Operations, which closed in 2020, to calculate and pay the money owed to the employees along with interest.

A photo of Buffalo's eatery in Smithfield Shopping Centre taken in 2020. Picture: Kieren James
A photo of Buffalo's eatery in Smithfield Shopping Centre taken in 2020. Picture: Kieren James

The Fair Work Ombudsman investigated this case after receiving requests for assistance from the affected workers.

Compliance notices were issued in January 2021 after a Fair Work inspector concluded the three workers had not been paid their annual leave entitlement on termination as owed under the Fair Work Act’s National Employment Standards, and that two of the workers were underpaid annual leave loading entitlements under the Restaurant Industry Award.

In imposing the penalty, Judge Gregory Egan said the entitlements remained outstanding and the company had not made any “arrangement for the payment of such moneys in the future.”

There had not been “any contrition shown” and Judge Egan felt the need to impose a penalty that would deter the company and other employers from similar conduct.

Fair Work Ombudsman Sandra Parker in her Melbourne offices. Picture: Aaron Francis/The Australian
Fair Work Ombudsman Sandra Parker in her Melbourne offices. Picture: Aaron Francis/The Australian

Fair Work Ombudsman Sandra Parker said business operators failing to act on compliance notices needed to be aware they can face court-imposed penalties on top of having to back-pay workers.

“When compliance notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” Ms Parker said.

“Visa holders have the same workplace rights as any other employee.

“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”

Ms Parker emphasised how taking action to improve compliance in the fast food, restaurant and café sector and protecting vulnerable workers like visa holders were enduring priorities for the FWO.

sandhya.ram@news.com.au

Originally published as Buffalo's eatery ordered to pay $29k in penalties for underpaying workers

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Original URL: https://www.themercury.com.au/news/cairns/buffalos-eatery-ordered-to-pay-29k-in-penalties-for-underpaying-workers/news-story/7b2bf88f16722067e12bcbd84397dd9e