Fair Work Ombudsman Cracks Down on Wage Theft in Hospitality Sector
The Fair Work Ombudsman (FWO) has initiated surprise inspections targeting fast food outlets, restaurants, and cafés in Sydney's inner west suburbs of Newtown and Enmore. These actions aim to ensure that employees are receiving their lawful pay and entitlements. Fair Work Ombudsman
Scope of Inspections
This week, 20 businesses are undergoing unannounced inspections. Fair Work Inspectors are conducting on-site interviews with managers and employees, scrutinising records and pay slips, and investigating any instances of unpaid work.
FWO's Stance on Unpaid Work
In December, the FWO emphasised via social media that all work hours must be compensated. Fair Work Ombudsman Anna Booth reiterated:
"Required to come in before a shift to get the premises ready? You must be paid."Fair Work Ombudsman
"Asked to stay back after close to cash up and clean up? You must be paid."Fair Work Ombudsman
"Asked to come in for a meeting on a day off? That time must be paid." Fair Work Ombudsman
Targeted Businesses
The inspections focus on businesses with prior non-compliance issues, those identified through anonymous reports, and establishments employing vulnerable workers such as young individuals and visa holders. Many of these eateries are characterised as 'cheap eats' venues.
Regulatory Priorities
Protecting vulnerable workers and enhancing compliance within the fast food, restaurant, and café sector remain top priorities for the FWO. Ms. Booth highlighted that low-cost dining should not come at the expense of workers' lawful wages and emphasised the vulnerability of young workers and visa holders who may be unaware of their rights or hesitant to voice concerns.
Compliance Issues Identified
Inspectors are vigilant for several compliance issues, including:
Unlawfully low flat rates of pay
"Off the books" employment arrangements
Inadequate or missed breaks
Non-payment of penalty rates and overtime
Inadequate or falsified record-keeping and pay slips
Cashback schemes where employees are unlawfully required to repay part of their wages
Historical Context
Previous snap inspections in 2018 revealed that 74% of audited food businesses in Newtown were non-compliant with workplace laws, leading to the recovery of over $80,000 for 286 employees. In 2023, the FWO recovered more than $239,000 for 333 underpaid Sydney workers following surprise inspections in various precincts.
What can workers and Employers do
The FWO encourages workers with concerns about wages and entitlements to reach out, including anonymously if preferred. Employers are urged to utilise the FWO's free tools and resources to ensure compliance or to contact the FWO directly for advice.
Frequently Asked Questions (FAQs)
What prompted these surprise inspections?
The FWO initiated these inspections to ensure compliance with workplace laws, particularly focusing on businesses with prior non-compliance issues, anonymous reports, and those employing vulnerable workers.
How can employees report concerns about their pay and entitlements?
Employees can contact the Fair Work Ombudsman through their website or by calling the Fair Work Infoline at 13 13 94. An interpreter service is available at 13 14 50.
What resources are available for employers to ensure compliance?
Employers can access the FWO’s pay calculator, Small Business Showcase, and various templates and guides available on the FWO website.
Are visa holders entitled to the same workplace rights as other employees?
Yes, visa holders have the same workplace rights as all other employees in Australia.
What are the consequences for businesses found non-compliant?
Businesses found non-compliant may face enforcement actions, including penalties and requirements to back-pay affected employees.
Conclusion
Ensuring fair treatment and lawful compensation for all workers is paramount. If you have concerns about your workplace rights or need assistance with migration matters, contact One Planet Migration for expert guidance and support.
