The Fair Work Ombudsman has recovered more than $129,000 for 180 underpaid workers in Hobart's fast food, restaurants and cafés sector following surprise inspections.
Fair Work Inspectors conducted inspections of food outlets representing 28 businesses in Hobart's CBD, North Hobart, Bellerive, Howrah, Rosny, Rosny Park and Lindisfarne last year.
After investigations, the FWO found 22 were non-compliant with the Fair Work Act and six businesses were compliant.
The most common breaches of the Fair Work Act included underpayment of base rates (20 businesses) and penalty rates (18 businesses), as well as breaches related to pay slips (five businesses) and record-keeping (seven businesses).
The largest wages recovery was $19,277 for 27 employees at one business, where breaches included failures to pay minimum rates, overtime and penalty rates as set out in the Restaurant Industry Award 2020.
The FWO issued 12 fines (Infringement Notices) to eight of the Hobart food businesses, totalling $24,570, for record-keeping and pay slip breaches. The workplace regulator also issued 31 Compliance Notices to 22 businesses, resulting in the total $129,674 in recovered wages.
There was a significant improvement in compliance found at a revisit to one business. The North Hobart business had back-paid 55 workers $150,905 after previous inspections in 2019. When reinspected last year the FWO found that business now met all their obligations, except for an error in missing an age-related pay increase for four employees, and promptly back-paid $2,199 owing to those staff members.
The director of the business said he had changed his practices since the FWO's first visit.
"When the FWO first visited in 2019, I was new in the industry and had no clue about the Award or that I was doing anything wrong," he said.
"I was hesitant to talk to FWO at first, but once I started dealing with them I realised they are impartial and will assist me in understanding my obligations.
"As such I was able to put in place practices in my business that assisted me to be compliant. I now understand the Award, specifically the classifications within it, as the 2019 underpayment arose due to wrong classifications. I have also made sure I have proper time records.
"I am thankful to the FWO as they have always supported me in understanding my obligations, and I know I can call them if I have any workplace questions and they are always there to assist me."
Fair Work Ombudsman Anna Booth said the overall findings demonstrate why improving compliance in the fast food, restaurants and cafés sector remains a national priority for the regulator.
"These Hobart wage recoveries for underpaid employees show that many workers in the fast food, restaurants and café sector - who are often vulnerable young people or visa holders - are still missing out on their lawful wages," Ms Booth said.
"Employers must ensure they are meeting their legal obligations to pay their workers proper base rates, penalty rates and overtime. Accurate pay slips and other records are also critical requirements.
"While we will be continuing to do surprise inspections in areas of concern nationally and holding employers to account, we want employers to get it right in the first place.
"We have a wide range of free resources to help them do that - including online, on the phone, and through our Employer Advisory Service for small businesses."
Ms Booth said both employers and employees should take advantage of the Fair Work Ombudsman's free information, tools and resources.
"Invest the time in getting your obligations right, rather than facing fines and possible court action," Ms Booth said.
"Employers can use our free online pay calculator tool, pay guides and templates of pay slips and wage records, to make sure they're getting wages right and are compliant with workplace laws.
"Through the Employer Advisory Service, the FWO offers small business employers free, tailored written advice about pay and conditions to help them meet their obligations under the Fair Work Act.
"Workers with concerns about their pay should also contact us-anonymously if preferred."
Employers are also encouraged to join employer associations, which can play an important role in helping business owners stay compliant.
Hospitality Tasmania CEO Steve Old welcomed the FWO's efforts to improve compliance across the sector in Hobart.
"Our members want to do the right thing and create fair and productive workplaces for their employees. Businesses involved in this activity reported positive experiences with Fair Work Inspectors, particularly the practical guidance and follow-up support provided throughout the process to help them understand and meet their obligations," Mr Old said.
"Hospitality Tasmania is committed to continuing to work collaboratively with the FWO to promote compliance across the sector. By working together, we can help employers better understand workplace laws and ensure employees receive all their lawful wages."
The FWO has targeted interactive tools to help employers and employees in the fast food, restaurants and cafés sector, and for any franchisees.
