[Australia] FWO penalises former Pizza Hut franchisee

Australia’s Fair Work Ombudsman has secured a $28,021 penalty in court against the former operator of a Pizza Hut outlet in south-east Queensland, Fair Work Ombudsman reports.

The Federal Circuit and Family Court imposed the penalty against IFITS Food Co Pty Ltd. It was the franchisee for the Albion Street, Warwick, outlet until the company ceased operating it in late 2021.

The penalty was reportedly imposed in response to IFITS Food Co's failure to comply with Compliance Notices requiring it to calculate and back-pay entitlements to two workers employed at the Warwick Pizza Hut outlet in part-time roles from March 2020 to October 2021.

One worker was employed as an assistant manager and the other, aged 17 at the time of employment, held a kitchen hand and customer service role.

In addition to the penalty, the Court ordered IFITS Food Co to back-pay the workers in full, plus applicable superannuation applying to one worker and interest for both.

Fair Work Ombudsman Anna Booth reportedly said that business operators who fail to act on Compliance Notices need to be aware they can face penalties in court as well as 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,” Ms Booth said.

“Employers also need to be aware that taking action to protect young workers and improve compliance in the fast food, restaurant and café sector are among our top priorities. Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”

The FWO investigated after requests for assistance from the affected workers.

A Fair Work Inspector issued Compliance Notices to IFITS Food Co in February and April 2022 after forming a belief that the company failed to pay the workers’ accrued but untaken annual leave entitlements at the end of their employment, owed under the Fair Work Act’s National Employment Standards.

The Fair Work Inspector also formed a belief that the younger worker was not paid payment-in-lieu-of-notice-of-termination entitlements, owed under the Fast Food Industry Award 2010.

Judge Gregory Egan reportedly found that there was a need to impose a penalty to deter the company and others from similar conduct in future.

“There is no evidence that the respondent has taken any action to change its recalcitrant behaviour,” he said.

Source: Fair Work Ombudsman

(Quotes via original reporting)

Australia’s Fair Work Ombudsman has secured a $28,021 penalty in court against the former operator of a Pizza Hut outlet in south-east Queensland, Fair Work Ombudsman reports.

The Federal Circuit and Family Court imposed the penalty against IFITS Food Co Pty Ltd. It was the franchisee for the Albion Street, Warwick, outlet until the company ceased operating it in late 2021.

The penalty was reportedly imposed in response to IFITS Food Co's failure to comply with Compliance Notices requiring it to calculate and back-pay entitlements to two workers employed at the Warwick Pizza Hut outlet in part-time roles from March 2020 to October 2021.

One worker was employed as an assistant manager and the other, aged 17 at the time of employment, held a kitchen hand and customer service role.

In addition to the penalty, the Court ordered IFITS Food Co to back-pay the workers in full, plus applicable superannuation applying to one worker and interest for both.

Fair Work Ombudsman Anna Booth reportedly said that business operators who fail to act on Compliance Notices need to be aware they can face penalties in court as well as 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,” Ms Booth said.

“Employers also need to be aware that taking action to protect young workers and improve compliance in the fast food, restaurant and café sector are among our top priorities. Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”

The FWO investigated after requests for assistance from the affected workers.

A Fair Work Inspector issued Compliance Notices to IFITS Food Co in February and April 2022 after forming a belief that the company failed to pay the workers’ accrued but untaken annual leave entitlements at the end of their employment, owed under the Fair Work Act’s National Employment Standards.

The Fair Work Inspector also formed a belief that the younger worker was not paid payment-in-lieu-of-notice-of-termination entitlements, owed under the Fast Food Industry Award 2010.

Judge Gregory Egan reportedly found that there was a need to impose a penalty to deter the company and others from similar conduct in future.

“There is no evidence that the respondent has taken any action to change its recalcitrant behaviour,” he said.

Source: Fair Work Ombudsman

(Quotes via original reporting)