The Fair Work Ombudsman has secured $34,500 in penalties in court against the operators of a café at Bondi, in Sydney.
The Federal Circuit and Family Court has imposed a $28,500 penalty against Preach by the Beach Pty Ltd, which operates 'Preach Café', and a $6,000 penalty against the company's sole director and shareholder, Rarbie Taha.
The penalties were imposed in response to Preach by the Beach failing to comply with a Compliance Notice requiring it to back-pay entitlements to a Thai international student it employed at the café as a cook for about a month in October-November 2020. Mr Taha was involved in the contravention.
The Court has also ordered the company to take the steps required by the Compliance Notice, which includes back-paying the worker in full, plus superannuation and interest.
Fair Work Ombudsman Sandra Parker said business operators that fail to act on Compliance Notices need to be aware they can face penalties in court on top of having to back-pay workers.
"When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements. We have no tolerance for employers who deliberately breach workplace laws, as occurred in this case," Ms Parker said.
"Employers also need to be aware that taking action to protect vulnerable employees, such as migrant workers, and improve compliance in the fast food, restaurant and café sector continue to be priorities for the FWO. Any workers with concerns about their pay or entitlements should contact us for advice and assistance."
The FWO investigated after receiving a request for assistance from the affected worker.
The Compliance Notice was issued in January 2022 after a Fair Work Inspector formed a belief that the worker was not paid sufficient wages for the work he performed but was entitled to be paid casual minimum wages and weekend penalty rates under the Restaurant Industry Award 2020.
Judge Douglas Humphreys found that the conduct was deliberate and pointed to a willingness "to exploit workers in an industry that has a significant track record in relation to under payments to workers".
"It is fair to say that it is somewhat notorious in the Court that compliance within the café and restaurant industry is at a very low level. Other matters before the Court, indicate an almost culture of seeking to exploit vulnerable young workers or workers who are here on visas on the basis they will not complain and that they can be taken advantage of by not paying them the award entitlements that they are entitled to," Judge Humphreys said.
