Melbourne food outlet operators penalised
The Fair Work Ombudsman has secured $29,924 in penalties in court against the former operators of a take-away food outlet in Melbourne.
The Federal Circuit and Family Court imposed a $24,974 penalty against The Carers Portland Inc, which operated the ‘HCM Café Fresh Q Lunch’ based in Dandenong South, and a $4,950 penalty against the company’s secretary Thi Hai Duong Luong (also known as Amy Luong).
The penalties were imposed in response to The Carers Portland Inc failing to comply with a Compliance Notice, which required the company to calculate and back-pay a worker’s entitlements. Ms Luong was involved in the contravention.
The company employed the worker as a kitchen hand at the food outlet between January and May 2021. The cafe is now closed.
Fair Work Ombudsman Anna Booth said employers that failed to act on Compliance Notices needed to be aware they could face court-imposed penalties.
“When Compliance Notices are not followed, we will continue to take legal action,” Ms Booth said.
“Employers should be aware that improving compliance in the fast food, restaurants and cafés sector is a priority for the Fair Work Ombudsman.
“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance.”
The Fair Work Ombudsman investigated after receiving a request for assistance from the affected worker.
The regulator issued a Compliance Notice to The Carers Portland Inc in December 2021 after forming a belief the worker was underpaid minimum wages, annual leave on termination and pay-in-lieu-of-notice under the Fast Food Industry Award 2010 and the Fair Work Act’s National Employment Standards.
In his judgement, Judge Karl Blake accepted that The Carers Portland Inc and Ms Luong “may commence business operations in the future” and found there was a need to impose the penalties to deter them from future breaches.
Judge Blake also found there was a need to signal to other employers that non-compliance with Compliance Notices will not be tolerated.
“The Compliance Notice framework provides a mechanism for efficient and cost-effective identification and rectification of potential breaches of the Act. It provides an alternative to litigation,” Judge Blake said.
“The effect of this framework will be hindered if recipients of Compliance Notices perceive that there is no meaningful consequence for a failure to comply with a Compliance Notice.”
Appeals in the Federal Court in the case have now concluded with no change to the penalties.
Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace.
A free interpreter service is available on 13 14 50. Employees can also seek information from their employer or their union, if they are a member.
The FWO has interactive tools to help employers and employees in the fast food, restaurants and cafés sector.
The FWO provides a free online course to help employers understand what a Compliance Notice is and how to respond if they get one. The Compliance Notice course, among a suite of free interactive courses on offer for employers, managers and employees, is available in our online learning centre.
Employers can seek information from their employer association if they are a member, and also use the FWO’s pay calculator and Small Business Showcase.
