AUSTRALIA | A restaurant operator in Cairns has been issued with an Enforceable Undertaking by the Fair Work Ombudsman.
The Fair Work Ombudsman has signed an Enforceable Undertaking with the trustees of a Cairns restaurant, which has back-paid nearly AUD 87,000 to 76 employees, including vulnerable visa holders.
The undertaking has been made by trustees Mesa 3 Pty Ltd and Helen Papagelou, for the Ex-RPH Trust, trading as Villa Romana restaurant.
It commits the employer to improve its compliance practices, which include record-keeping.
The FWO identified the underpayments, as well as widespread record-keeping failures, during its investigation after a snap inspection of the Italian restaurant in 2023 as part of wider inspections of Cairns food precincts' businesses.
The impacted employees were both kitchen and front-of-house staff, with at least 28 of the 76 workers (37 percent) being on working holiday visas or student visas.
Underpayments to individual employees ranged from NZD 10 to NZD 4,283.
The Villa Romana underpayments that the FWO identified occurred between May and October 2023.
While most of the underpayments arose from failing to pay staff weekend penalty rates, failure to pay overtime rates, split shift allowances and correct base rates also contributed to underpayments.
As well as rectifying the AUD 86,873 underpayments in full, Villa Romana has put in place systems and processes to prevent further underpayments. The restaurant’s trustees will also make a contrition payment of AUD 40,000.
An Enforceable Undertaking was considered appropriate because of Villa Romana’s cooperation with the FWO in its investigation, back-payments, and measures to prevent future non-compliance.
Fair Work Ombudsman Anna Booth said accurate and complete record-keeping was the bedrock of compliance with the Fair Work Act.
“Villa Romana’s record-keeping failures were extensive. Accurate records and payslips are crucial to allow employees to see if their employers are paying them lawfully for all hours worked,” Booth said.
She added that, on the underpayments, penalty rates are an important legal entitlement to compensate staff working unsociable hours.
“We welcome the employer’s back-payments of all impacted staff, including visa holders, and their commitments to improve their processes so that there is ongoing compliance in the future.”
Booth said improving compliance in the fast food, restaurants and cafés sector is a priority for the FWO, including due to its engagement of a significant number of visa holders, who may be vulnerable.
“The FWO encourages employers to take advantage of the tools and resources we offer via our website, the Fair Work Infoline and the Employer Advisory Service to get wages right and maintain correct records.”
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