Geelong café owner fined over $100,000 for wage theft

Operators of a popular Geelong cafe have been found guilty of wage theft and were fined more than $100,000 for underpaying employees.

JMSL Pty Ltd and sole director, Edison Peng faced the Federal Circuit and Family Court recently, accused of underpaying workers a total of $15,142 between May 2016 and November 2018.

JMSL operated the Coffee Club outlet at Westfield Geelong.

It was alleged by the Fair work Ombudsman that JMSL and Peng deliberately underpaid two young workers and falsified records.

Peng plead guilty to the underpayments and to breaching record-keeping and pay slip laws.

It is alleged he made dozens of false time-and-wages records, which he provided to the Fair Work Ombudsman.

The employees were back paid only after the Ombudsman began legal action. They were paid below the minimum junior pay rates under the Restaurant Industry Award 2010.

JMSL was fined $96,336 while Mr Peng copped a $19,267 whack.

“Deliberate falsification of records and the payment of low, flat rates that undercut Award entitlements is completely unacceptable conduct. The exploitative conduct we have seen in this matter will not be tolerated in any Australian workplace,” Fair Work Ombudsman Sandra Parker said.

“Employers also need to be aware that protecting vulnerable workers, like young workers, and enforcing compliance in the fast food, restaurant and cafe sector are enduring priorities for the FWO. 

"Any employees with concerns about their pay or entitlements should contact us for free advice and assistance,” Parker said.

Advice and assistance on employment matters can be found at www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice.

Jonathan Jackson - 23-3-23