The Fair Work Ombudsman has recovered $310,017 for 370 underpaid food outlet employees in Adelaide’s west and issued more than $100,000 in fines for pay slip and record-keeping breaches, following surprise inspections.
Fair Work Inspectors investigated 36 fast food outlets, restaurants and cafés – mostly ‘cheap eats’ venues – in Bowden, Croydon, Allenby Gardens, Woodville, Grange and Flinders Park. Businesses were targeted for investigation based on FWO intelligence from a range of sources, including anonymous reports.
Of 33 investigations finalised, the FWO found 26 businesses (79 per cent) had breached workplace laws. The most common breaches were a failure to pay various penalty rates (25 businesses), underpaying minimum wages for ordinary hours (20 businesses), record-keeping breaches (eight businesses), and pay slip breaches (eight businesses).
Fair Work Ombudsman Anna Booth said improving compliance in the fast food, restaurants and cafés sector was an ongoing priority for the regulator.
“These disappointing findings in Adelaide’s western suburbs are part of a national Food Precincts Program where we’ve often found that low-cost dining comes at the expense of workers’ lawful wages,” Ms Booth said.
“Employers must follow all wage laws, including penalty rates, which generally serve as compensation for those working at times when most people are not. Those doing the wrong thing are being found out and held to account.
“Record-keeping is the bedrock of compliance and some employers have paid the price for failing to follow those laws.
“Employers should access our wide range of free online tools and resources to ensure they’re meeting their obligations, or contact the FWO directly for free advice. We want to help businesses in the food sector get it right in the first place.
“We also urge workers with concerns about wages and entitlements to reach out to us – including anonymously if preferred.”
The largest amount recovered from any one business was $65,986 for 10 restaurant employees, who were cooks, kitchen hands and waiting staff. These workers were underpaid penalty rates and minimum wage rates. The business was also issued Infringement Notices related to record-keeping and pay slip breaches.
Following investigations, the FWO issued 26 Compliance Notices, recovering $272,991 for 332 workers. The rest of the money recovered was voluntarily back-paid by employers without the use of an enforcement tool.
Sixteen Infringement Notices for pay slip and record-keeping breaches issued to a combined nine businesses resulted in $103,156 in fines paid.
Investigations into three businesses are ongoing.
Previous audits of Adelaide food outlets have recovered more than $189,000 for 306 underpaid workers and over $97,000 for 155 employees.
Combined with the investigations in Adelaide’s western suburbs, about $576,000 in wages has been recovered for Adelaide food workers as part of the FWO’s national Food Precincts Program.
The FWO’s surprise inspections have also taken place in Melbourne, Brisbane, Sydney, Hobart, Launceston, Darwin, the Gold Coast, Perth, Newcastle, Canberra, Cairns and the Sunshine Coast.
In 2023-24, the regulator recovered $5.6 million for more than 3000 underpaid fast food, restaurant and café workers nationally.
Some of the FWO’s highest court-ordered penalties have involved businesses in this sector, such as the record $15.3 million against the former operators of Sushi Bay restaurants for deliberately exploiting vulnerable migrant workers, and $4 million against the operators and managers of three Din Tai Fung restaurants for deliberately and systematically underpaying vulnerable migrant workers and providing false records.
The FWO has interactive tools to help employers and employees in the fast food, restaurants and cafés sector, and information for franchisees. Employers can also use the FWO’s pay calculator and Small Business Showcase.
The FWO also has resources for visa holder workers – who have the same workplace rights as any other workers.
