$81,000 in wages recovered for Subway workers

01 October, 2019 by
Hospitality Magazine

The Fair Work Ombudsman has recovered a total of $81,638.82 in unpaid wages to 167 current and former Subway employees.

The Ombudsman conducted an investigation into Subway franchisees in New South Wales, Queensland and Victoria after they received tipoffs, and found 18 out of 22 were not compliant with workplace laws.

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Employers not only failed to pay employees minimum wage, but did not pay overtime rates or casual loadings. Employers also failed to issue proper payslips and keep employment records.

In total, inspectors issued seven compliance notices, nine formal cautions, nine fines for record keeping and pay slip breaches to the total of $5,880.

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Over the past two years, the Ombudsman has recovered a total of $150,000 for Subway employees.

“Half of the underpaid Subway employees were young workers or from a migrant background, which can make them particularly vulnerable to exploitation,” said Sandra Parker, Fair Work Ombudsman.

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“Franchisors, especially in the fast food sector, are a priority for the Fair Work Ombudsman. Franchisors can be held legally responsible if their franchisee stores don’t follow workplace laws. The community expects head companies to assure themselves that all the stores in their franchise network are paying workers their correct wages and entitlements.”