Cairns restaurant operator fined nearly $30K
The Fair Work Ombudsman has secured a total of $29,970 in court penalties against the former operator of a Far North Queensland restaurant for breaches affecting migrant workers.
The Federal Circuit and Family Court has imposed the penalties against Buffalos Cairns Operations Pty Ltd, which operated a restaurant trading as Buffalo’s at Smithfield Shopping Centre.
The penalties were imposed in response to Buffalos Cairns Operations failing to comply with Compliance Notices requiring it to calculate and back-pay annual leave entitlements to three workers it employed at the restaurant owing when their employment ended at various periods between April 2020 and October 2020.
The workers included a part-time cook, a part-time food and beverage attendant and a full-time operations manager. Two of the workers were visa holders, from Turkey and France.
In addition to the penalties, the Court has ordered Buffalos Cairns Operations to pay the money owing to the employees, which the Compliance Notices required it to calculate and pay, plus interest.
Fair Work Ombudsman Sandra Parker said business operators that fail to act on Compliance Notices need to be aware they can face court-imposed penalties on top of having to back-pay workers.
“When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” Ms Parker said.
“Employers also need to be aware that taking action to improve compliance in the fast food, restaurant and café sector and protecting vulnerable workers like visa holders are enduring priorities for the FWO. Visa holders have the same workplace rights as any other employee.”
“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”
The FWO investigated after receiving requests for assistance from the affected workers.
Compliance Notices were issued in January 2021 after a Fair Work Inspector formed a belief that the three workers had not been paid their entitlement to annual leave on termination owed under the Fair Work Act’s National Employment Standards, and that two of the workers were underpaid annual leave loading entitlements under the Restaurant Industry Award.
In imposing the penalty, Judge Gregory Egan noted the entitlements remained outstanding and that the company had not made any “arrangement for the payment of such monies in the future.”
Judge Egan said there had not been “any contrition shown” and found there was a need to impose a penalty that would deter the company and other employers from similar conduct.
The restaurant closed in 2020.
Fair Work Ombudsman, 17th May 2023
