WA hospitality businesses breaching employment laws

Many Western Australian hospitality businesses are failing to comply with employment laws, meaning hundreds of workers have been underpaid – to the tune of $350,000 in total. 

The underpayments were identified after a 12-month investigation by industrial inspectors from the Department of Mines, Industry Regulation and Safety and related to 49 cafes and restaurants and 369 employees.

On Monday, DMIRS executive director Lorraine Field announced that four out of five of the inspected businesses were non-compliant.

“Of course not every business that underpays does so intentionally, but there appears to be a systemic problem in some cafes and restaurants where they are underpaying their employees,” Ms Field said.

“While we understand many cafes and restaurants are doing it tough, particularly in the wake of COVID-19 restrictions, complying with employment laws is not optional. Industrial inspectors will be continuing to target high-risk sectors.”

$73,000 worth of underpayments were directly linked to one large restaurant with more than 50 employees, that were paid below award rates and didn’t receive penalty loading.

There was also proof of unexplained pay deductions and unjustified adjustments to annual leave.

The restaurant has since paid back almost half of what is owed to employees but will be subject to a further inspection to ensure its compliance.

The report found that half of all WA hospitality employees were most likely not aware of their rights due to their age (between 15 and 24), with a third of employees being visa workers or recent migrants.