Sydney café fined $124,000 for failing to backpay
The Fair Work Ombudsman has secured $124,275 in penalties in court against the former operators of a café in inner Sydney.
The Federal Circuit and Family Court has imposed a total of $99,900 in penalties against More Than Skin Pty Ltd, which operated The Noshery café in Glebe, and a total of $20,379.60 in penalties against Ms Lila Stojcevski and a $3,996 penalty against her brother Mr Lupo Stojcevski, who were co-directors of the company.
The penalties were imposed in response to More Than Skin failing to comply with three Compliance Notices requiring it to calculate and back-pay entitlements to three workers it employed at the café for various periods between September and December 2020, and for breaching pay slip laws.
The workers included two international students and a working holiday visa holder and were engaged in kitchen and waitstaff roles.
Ms Stojcevski was involved in the breach of two Compliance Notices and the failure to provide pay slips, and Mr Stojcevski was involved in the breach of one of the Compliance Notices.
In addition to the penalties, the Court has ordered More Than Skin to back-pay the workers in full, plus superannuation and interest.
Fair Work Ombudsman Anna Booth said business operators that fail to act on Compliance Notices need to be aware they can face penalties in court on top of having to back-pay workers.
“When Compliance Notices are not followed, we will continue to take legal action. Employers who fail to act on these notices risk substantial penalties and back-pay orders,” Ms Booth said.
“Employers also need to be aware that taking action to protect visa holders and improve compliance in the fast food, restaurant and cafés sector are among our top priorities.”
“There is also no excuse for not issuing pay slips to your workers, as the law demands. 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.
A Fair Work Inspector issued the Compliance Notices to the company between March and May 2021 after forming a belief the workers had not been paid their minimum casual wage entitlements, and casual penalty entitlements for weekend and public holiday work, owed under the Restaurant Industry Award 2020.
The company also failed to provide pay slips to two of the workers.
In her judgment, Judge Sophie Given found that the company and individual respondents had shown no contrition nor taken any responsibility for their conduct, and that Ms Stojcevski was “deliberately uncooperative” during her dealings with the FWO.
Judge Given also found that the contraventions could only be described as “deliberate” and “not the result of oversight or any other mistake”.
“The failure to comply with the compliance notices and to issue payslips was done in conscious disregard for the company's obligations as an employer and that the involvement of the individual respondents was equally deliberate and indifferent despite those obligations,” Judge Given said.
Judge Given noted that the workers had still not been paid more than two years after the Compliance Notices were issued, and that there was a need to impose “substantial” penalties that would deter the company, Ms Stojcevski, Mr Stojcevski and others from similar future conduct.
“Employers in the café and restaurant industry should recognise the significant detriment which will result by failing to comply with their obligations,” Judge Given said.
“Employers ignore the FWO, and moreover the orders of the Court, at their peril,” Judge Given said.
Fair Work Ombudsman, 15th December 2023
