The Fair Work Ombudsman has secured a total of $29,200 in penalties in court against the operators of a Hobart café.
The Federal Circuit and Family Court has imposed penalties of $22,000 against Welvin and Kevin Pty Ltd, which operates the Salamanca Wharf Café, $3,000 against company director Mr Zhi Zhi Tan and $4,200 against company majority shareholder and manager Mr Qingxiang (Kevin) Meng.
The penalties were imposed in response to Welvin and Kevin Pty Ltd failing to comply with a Compliance Notice requiring the back-payment of entitlements to five workers who were employed at Salamanca Wharf Café. Mr Tan and Mr Meng were involved in the breach.
One of the employees, from Nepal, was a visa-holder at the time and four of the other employees were young workers, aged 17 to 19.
Welvin and Kevin also breached record-keeping laws. Mr Meng was involved in the breach.
Welvin and Kevin back-paid most of the workers' entitlements after the Fair Work Ombudsman commenced legal action, however the Court has also ordered the company to fully comply with the Compliance Notice by also back-paying the workers' superannuation entitlements.
Acting Fair Work Ombudsman Kristen Hannah said business operators that fail to act on Compliance Notices need to be aware they can face court-imposed penalties 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," Ms Hannah said.
"Any employees with concerns about their pay or entitlements should contact us for free advice and assistance."
The regulator investigated Salamanca Wharf Café during an auditing activity targeting Hobart food precincts.
A Fair Work Inspector issued a Compliance Notice to Welvin and Kevin Pty Ltd in July 2020 after forming a belief five workers were underpaid minimum wage rates and penalty rates for weekend and public holiday work under the Hospitality Industry Award 2010 between December 2018 and March 2020.
The Compliance Notice required the company to calculate and back-pay the workers' outstanding entitlements.
