Sydney PappaRich franchisees have been hit with $307,802 in penalties, after the Fair Work Ombdusman found 154 workers across three of the city’s venues had been underpaid $74,000.
Between May and July in 2017, PappaRich employees were paid flat rates as low as $13 to $14.50 per hour, resulting in underpayment of their ordinary hourly rates, weekend and public holiday penalty rates, overtime rates and casual loadings under the Restaurant Industry Award.
In total, 73 employees who primarily worked at PappaRich Macquarie Park were underpaid $34,834, a further 42 employees at PappaRich Chatswood were underpaid $22,533, and 39 employees at the PappaRich Sydney CBD outlet were underpaid $16,633. Some of the employees worked at more than one of the three stores.
Among those affected were employees on student and working holiday visas. Underpayments have been rectified in full.
Wong and the companies also breached laws relating to annual and personal leave entitlements, entering into written agreements with part-time employees, minimum engagement pay, a split shift allowance, record-keeping and pay slips.
Loke Cheng Wong, manager-operator of the PappaRich franchise outlet at Macquarie Park, and former manager-operator of PappaRich franchise outlets in Chatswood and on Liverpool Street in the Sydney CBD, has been penealised $34,425.
Two companies Wong is a director and part-owner of — PPR Ryde (NSW) Pty Ltd and Gateharvest Pty Ltd — have also been penalised $141,751 and $131,626, respectively, for their involvement in some of the underpayments.
Innspectors discovered the PappaRich underpayments during surprise audits according to Fair Work Ombudsman Sandra Parker.
Image: PappaRich Macquarie