Coffee Club Blacktown underpays overseas worker $36,000

29 October, 2019 by
Hospitality Magazine

The operators of the Coffee Club Blacktown in Sydney’s west will back-pay a waitress $36,745 and overhaul its workplace practices after signing a court-enforceable order with the Fair Work Ombudsman.

The waitress, who was working at the cafe on a visa, contacted Fair Work for assistance, with inspectors discovering she was paid flat hourly rates of $10 and $15.50 instead of ordinary hourly rates up to $25.28, $30.33 on weekends and $50.55 on public holidays.

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The company, Sean & Eddy Pty Ltd and its sole director Ji Hae Hong admitted it breached workplace law by failing to issue pay slips to workers, pay superannuation or keep employment records.

Along with back-paying the employee, the company will make a gesture of contrition through a $3000 payment to the government’s consolidated revenue fund. The company must also use independent external auditors to check employees are receiving the right entitlements in 2019 and 2020.

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In addition, Hong will write a letter of apology to the worker and place a company notice in the Blacktown Advocate.

“The Fair Work Ombudsman will closely monitor compliance with the Court-Enforceable Undertaking and will not hesitate to litigate if there are further breaches of workplace laws,” says Sandra Parker, fair Work Ombudsman.

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The Ombudsman has encouraged Coffee Club employees to reach out to Fair Work with any concerns.

The Ombudsman has had recent dealings with the brand including a former franchisee slapped with $180,000 in penalties in 2017 and the commencement of legal action against another operator for allegedly underpaying two young workers and providing false information to inspectors.

Image credit: Coffee Club