Burger chain back-pays staff $1.1 million

09 December, 2019 by
Hospitality Magazine

Former and current employees of Mos Burger have been back-paid $1.12 million by the Australian arm of the Japanese burger chain.

Mos Burger Australia Pty Ltd, which has entered into a Court-Enforceable Undertaking after a Fair Work Ombudsman investigation found contraventions of the Fast Food Industry Award 2010, will also face ongoing scrutiny of its workplace practices.

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Between 2011 and 2018, 285 workers were underpaid across the company’s six stores in Brisbane, Surfers Paradise, Southport, Broadbeach, Mt Gravatt and Sunnybank.

A number of breaches were uncovered by Fair Work inspectors. The company had paid unlawfully low flat rates to workers and misclassified some employees as part-time when they were in fact casuals. The business failed to pay ordinary hourly rates, casual loadings, and penalty rates for night, weekend and public holiday hours.

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Many of the affected workers were visa holders and young workers, and were employed in a variety of positions, with individual underpayments ranging from $18 to $31,975.

The company has rectified all unpaid wages and superannuation, and paid an additional seven per cent compensation to workers.

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Under the Enforceable Undertaking, MOS Burgers Australia must fund external auditors to check pay and conditions for workers employed in 2019 and 2020, and rectify any underpayments.

Image: Weekend Notes