Baker Group Management, which trades as Angelucci's Restaurant and Bar on Chapel Street in Melbourne's South Yarra has been fined $7,000, and its operator a further $3,000, for failing to keep proper employment records for more than 70 employees.

The company's employment records didn't contain sufficient detail, such as names of some employees, whether they were full-time, part-time or casual, all hours worked and superannuation contributions. The company also failed to issue written payslips.

The Fair Work Ombudsman audited Baker Group Management in 2008 after receiving a complaint from an underpaid employee, who was subsequently back-paid $870.

Michael Campbell, Fair Work Ombudsman executive director, says the court penalty reinforces the message that failing to keep proper records for staff is a serious matter.

"The employment records were in such poor condition that our inspectors were not able to determine whether employees had been paid their full entitlements," he said.

"This is a completely unacceptable state of affairs."