The operators of a Melbourne restaurant have been hit with nearly $200,000 in penalties, after a Judge ruled they deliberately underpaid workers.

The penalties, imposed in the Federal Circuit Court, are the result of an investigation and legal action by the Fair Work Ombudsman. 

Thirteen employees at the restaurant in Westfield Knox shopping centre, including six young workers under 21, were underpaid a combined $26,707 over a period of just three-and-a-half months in 2015.

Workers were paid flat rates which failed to meet the minimum hourly rate for 11 of the workers. The flat rates were also not enough to meet weekend, overtime, night and public holiday penalty rates under the Restaurant Industry Award 2010.

Casual loading, shift allowances and annual leave entitlements were also underpaid.
The employees missed out on between 16.95 and 38.22 per cent of their minimum entitlements. They have now been back-paid in full.

The ex-operator and his company also contravened workplace laws by failing to keep proper employment records and failing to comply with a Notice to Produce pay records.

Fair Work Ombudsman Natalie James says the substantial penalties reflect the seriousness of the contraventions.

“We have no patience for business operators who fail to respect the law and ignore our advice,” Ms James said.

Ms James said addressing underpayment of young workers in the restaurant industry would continue to be a key focus for her agency.

“We have commenced more than 25 legal actions against restaurant industry operators over the past two years, which means the restaurant sector has accounted for about a quarter of our legal actions over this period,” she said.

“We will continue to scrutinise the restaurant sector closely and employers should be aware that we treat cases involving underpayment of young workers particularly seriously because we are conscious that they can be vulnerable due to a lack of awareness of their entitlements and a reluctance to complain.”

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