Fair Work investigation uncovers payment breaches in 77% of hospitality venues
An investigation into 47 businesses in Sydney will see almost $240,000 paid back to Sydney hospitality workers.
The investigation found that 77% of businesses had breached workplace laws, leading the Fair Work Ombudsman to issue 27 infringement notices and $90,354 in fines.
Approximately 333 workers were found to have been underpaid, including by one business that had underpaid 18 casual workers and full-time employees $52,081.
The surprise inspection between May and June 2022 saw venues in Haymarket, Chinatown, Darling Harbour, Barangaroo, Surry Hills and Darlinghurst deemed “at risk”.
The businesses chosen had a history of non-compliance, or had employed vulnerable migrant workers on international visas.
This is a national investigation involving venues in Melbourne, Hobart, Perth and Brisbane.
So far, $2 million has been recovered for workers.
Fair Work Ombudsman Sandra Parker said they were targeting "cheap eats" areas because figures for breaches were "not going down.
"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.
"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."
Parker said restaurants had generally been co-oprative.
"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 36 businesses ion breach of workplace laws, 31 had underpaid workers and 22 had failed to keep a record of payment.
Two businesses are still under investigation.
Jonathan Jackson, 1st May 2023
