The Fair Work Ombudsman has secured $9,990 in penalties in court against the former operators of a bistro restaurant business at Point Frederick.
The Federal Circuit and Family Court has imposed a $7,992 penalty against Tolu Investors Pty Ltd, which operated Spinnakers Brasserie until 2021, and a $1,998 penalty against company director Grant Christopher Goldsmith.
The penalties were imposed in response to Tolu Investors failing to comply with a Compliance Notice requiring it to calculate and back-pay entitlements to an employee it engaged on a full-time basis as a cook between March 2018 and June 2021.
Goldsmith was involved in the contravention.
The worker, originally from Pakistan, speaks Urdu as a first language.
The worker was back-paid more than $34,000 in entitlements – equivalent to almost a year’s salary – only after the FWO commenced legal action.
Acting Fair Work Ombudsman Mark Scully said business operators that fail to act on Compliance Notices need to be aware they can face penalties in court 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 all their lawful entitlements,” Scully said.
“Employers also need to be aware that taking action to improve compliance in the fast food, restaurant and café sector and to protect vulnerable workers are priorities for the FWO.
“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”
The FWO investigated after receiving a request for assistance from the affected worker.
A Fair Work Inspector issued the Compliance Notice to Tolu Investors in November 2021 after forming a belief that the worker had been underpaid minimum wages and personal leave entitlements owed under the Restaurant Industry Award 2010, the Restaurant Industry Award 2020 and the Fair Work Act’s National Employment Standards.
In her judgment, Judge Amanda Mansini said there was evidence that the worker “experienced personal hardship on account of his low earnings for work performed for Tolu Investors.
Mansini found there was a lack of contrition from Goldsmith, and that there was a need to impose penalties to deter other employers and the respondents from similar conduct.
“The failure to comply with a statutory notice issued by the FWO is serious and such conduct ultimately undermines the [Fair Work] Act’s enforcement framework and the safety net of entitlements it is designed to protect,” she said.
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace.
An interpreter service is available on 13 14 50.
Source:
Fair Work Ombudsman