[Australia] Underpayment of hundreds of Sydney hospitality workers discovered

In Australia, an investigation into 47 Sydney hospitality businesses found 77 per cent had breached workplace laws. Now nearly $240,000 will be repaid to workers, ABC News reports.

Surprise inspections from the Fair Work Ombudsman revealed that just one business had underpaid 18 casual workers and full-time employees $52,081. 

Venues deemed "at risk" were reportedly targeted following a number of anonymous tips. In addition, venues were chosen if they had a history of non-compliance, or employed vulnerable migrant workers on international visas. 

A number of the 333 workers discovered to have been exploited were young and vulnerable, according to Fair Work Ombudsman Sandra Parker. 

The investigation took place between May and June 2022 and forms part of a national operation, including food precincts in Melbourne, Hobart, Perth and Brisbane which has recovered more than $2 million for workers to date.

Ms Parker reportedly said that the inspections were targeting "cheap eats" areas because figures for breaches were "not going down" and employers often took advantage of the system.

"What we have found across Australia when we've done audits of these food precincts … fast foods, restaurants and cafe sector … we have found very high levels of non-compliance," she said.

"Sydney is not really an outlier in that regard.

"It is a high-risk sector, it employs a lot of young people, they have high turnover of staff … low margins … they tend to employ a lot of visa holders, they are by their nature vulnerable workers."

Ms Parker reportedly added that, while business owners were surprised to see Fair Work officials at their door, they were frequently very cooperative thereafter.

"If they are surprised and wanting to fix the issue, and they are willing to do that quickly and not get it wrong in future, we make sure they pay the money back and then we let the matter go," she said.

Of the 36 businesses found to be in breach of workplace laws, 31 had underpaid workers and 22 had failed to keep a record of payment.

In addition, the Fair Work Ombudsman issued 27 infringement notices and $90,354 in fines. Another two businesses reportedly remain under investigation for alleged breaches.

Source: ABC News

(Quotes via original reporting)

In Australia, an investigation into 47 Sydney hospitality businesses found 77 per cent had breached workplace laws. Now nearly $240,000 will be repaid to workers, ABC News reports.

Surprise inspections from the Fair Work Ombudsman revealed that just one business had underpaid 18 casual workers and full-time employees $52,081. 

Venues deemed "at risk" were reportedly targeted following a number of anonymous tips. In addition, venues were chosen if they had a history of non-compliance, or employed vulnerable migrant workers on international visas. 

A number of the 333 workers discovered to have been exploited were young and vulnerable, according to Fair Work Ombudsman Sandra Parker. 

The investigation took place between May and June 2022 and forms part of a national operation, including food precincts in Melbourne, Hobart, Perth and Brisbane which has recovered more than $2 million for workers to date.

Ms Parker reportedly said that the inspections were targeting "cheap eats" areas because figures for breaches were "not going down" and employers often took advantage of the system.

"What we have found across Australia when we've done audits of these food precincts … fast foods, restaurants and cafe sector … we have found very high levels of non-compliance," she said.

"Sydney is not really an outlier in that regard.

"It is a high-risk sector, it employs a lot of young people, they have high turnover of staff … low margins … they tend to employ a lot of visa holders, they are by their nature vulnerable workers."

Ms Parker reportedly added that, while business owners were surprised to see Fair Work officials at their door, they were frequently very cooperative thereafter.

"If they are surprised and wanting to fix the issue, and they are willing to do that quickly and not get it wrong in future, we make sure they pay the money back and then we let the matter go," she said.

Of the 36 businesses found to be in breach of workplace laws, 31 had underpaid workers and 22 had failed to keep a record of payment.

In addition, the Fair Work Ombudsman issued 27 infringement notices and $90,354 in fines. Another two businesses reportedly remain under investigation for alleged breaches.

Source: ABC News

(Quotes via original reporting)