Former western Sydney restaurant operator penalised
The Fair Work Ombudsman has secured a $58,275 penalty in court against the former operator of a western Sydney restaurant that specialised in Middle Eastern cuisine.
The Federal Circuit and Family Court has imposed the penalty against King’s Fusion Pty Ltd, which operated “Bayt Al Tanoor” in Yagoona before it closed.
The penalty was imposed in response to the company failing to issue pay slips and failing to comply with a Compliance Notice requiring it to calculate and back-pay entitlements to a worker it employed at the restaurant as a casual food and beverage attendant between March and June 2021.
In addition to the penalties, the Court has ordered King’s Fusion Pty Ltd to take the actions required by the Compliance Notice, including making full back-payment of entitlements, plus superannuation and interest.
Acting Fair Work Ombudsman Michael Campbell 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,” Mr Campbell said.
“Taking action to improve compliance in the fast food, restaurant and café sector is one of the Fair Work Ombudsman’s top priorities.”
“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 worker.
A Fair Work Inspector issued a Compliance Notice to King’s Fusion in April 2022 after forming a belief the worker was underpaid casual minimum wages, overtime entitlements and weekend penalty rates, owed under the Restaurant Industry Award 2020.
In imposing the penalty, Judge Brana Obradovic found that the worker was underpaid approximately $5,200 and said the “underpayment of such a significant amount arose over a short period of time”.
“The employee left her employment because she was not being paid properly and thereafter kept missing out on the benefit of her wages as the underpayment has never been made good,” Judge Obradovic said.
Judge Obradovic found King’s Fusion’s failure to back-pay the worker and engage in the proceedings demonstrated a “serious and deliberate disregard” for its obligations under the Fair Work Act and the authority of the Fair Work Ombudsman, and that there was a need to deter the company and other employers from similar future conduct.
Judge Obradovic also found the company’s failure to provide pay slips “denied the employee the opportunity to monitor her wages and ensure that they were paid correctly.”
Fair Work Ombudsman, 2nd May 2024
