Degraves Street café fined $42,000

The Fair Work Ombudsman has secured more than $42,000 in court penalty and back-pay orders against the former operators of a Degraves Street café in Melbourne’s CBD.

The Federal Circuit and Family Court has imposed a $15,125 penalty against Aisha & Umma Enterprises Pty Ltd, which formerly traded as RMB Café, for failing to comply with a Compliance Notice requiring it to calculate underpayments and back-pay 13 workers.

In addition to the penalties, the Court has ordered Aisha & Umma Enterprises to pay the workers a total of $27,516 that remains owing, plus superannuation and interest.

Aisha & Umma Enterprises employed the workers as food and beverage attendants and cooks at RMB Café for various periods between May 2017 and August 2019.

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 is an enduring priority for the FWO.”

“Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”

The regulator began an investigation as part of its 2018-19 Melbourne food precincts audits.

A Fair Work inspector issued the Compliance Notice in June 2020 in response to Aisha & Umma Enterprises underpaying the 13 affected workers’ minimum wages, and penalty rates for weekend and public holiday work under the Restaurant Industry Award 2010.

The Compliance Notice required a total payment of $36,479 to the employees. The Fair Work Ombudsman commenced legal action after Aisha & Umma Enterprises made only partial back-payment.

In imposing the penalty, Judge Catherine Symons noted that four of the workers are still owed more than $4,000 each and that workers had been “deprived of not insubstantial amounts of money over a lengthy period”.

Judge Symons found that failing to comply with a Compliance Notice was “a mischief to which general deterrence can and should appropriately be directed”.

“I also accept that there is some evidence that supports a greater need for general deterrence when the case is one that concerns a business that operates (or operated) in the café and restaurant industry,” Judge Symons said.

Fair Work Ombudsman, 2^nd June 2023