Adelaide operator facing court over failure to back-pay workers

10 October, 2019 by
Hospitality Magazine

The former operators of the Fair Espresso Central Market café-restaurant in the Adelaide CBD will face Federal Circuit Court after, with the Fair Work Ombudsman alleging they breached the Fair Work Act by failing to comply with a Compliance Notice requiring the company to back-pay $16,004 to four underpaid casual workers.

The company that formerly owned and operated the business, B2D Pty Ltd, and the company’s sole director, Lakshmi Kumar were investigated by Inspectors after the FWO received requests for assistance from the workers and formed a reasonable belief that they had been underpaid their minimum ordinary hourly rates, weekend and public holiday penalty rates, casual loadings and meal break entitlements under the Restaurant Industry Award 2010.

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A Compliance Notice was then issued to B2D requiring the business to rectify the alleged underpayments.

It’s alleged the workers, including one aged 18-19 at the time, were individually underpaid between $1187 and $5926 for various periods of work between December 2017 and November 2018.

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Fair Work Ombudsman Sandra Parker says compliance notices are an important tool for inspectors to recover unpaid wages for workers.

“The Fair Work Ombudsman is cracking down on the alleged underpayment of vulnerable workers in the fast food, restaurant and café sector,” says Parker.  “We will continue to audit businesses suspected of underpaying workers, and utilise our full suite of enforcement tools to hold employers to account.”

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The Fair Work Ombudsman alleges B2D and Kumar also breached workplace laws by failing to keep proper records, failing to issue pay slips and providing false or misleading records to a Fair Work Inspector.

The FWO is seeking penalties against B2D and Kumar. The company faces maximum penalties per breach ranging from$31,500 to $63,000, while Kumar faces maximum penalties per breach ranging from $6,300 to $12,600.

The FWO is also seeking a Court Order requiring the company to rectify the underpayments in full, plus interest. A directions hearing has been listed in the Federal Circuit Court in Adelaide for 20 November 2019.

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