The Fair Work Ombudsman has secured a total of $5,328 in penalties in court against the former manager of a Sydney café.
The Federal Circuit and Family Court has imposed the penalty against Diaa Mohamed, who formerly managed the Blue Mist Café in Bankstown, before the café closed.
The penalty was imposed in response to Mr Mohamed’s involvement in a failure to comply with a Compliance Notice requiring the back-payment of entitlements to an international student from the Philippines who had been employed at the café.
Fair Work Ombudsman Sandra Parker said individuals involved in operating businesses that fail to act on Compliance Notices need to be aware they can face court-imposed penalties.
“When Compliance Notices are not followed, we are prepared to take legal action,” Ms Parker said.
“Employers also need to be aware that taking action to improve compliance in the fast food, restaurant and café sector continues to be a for the FWO. Any employees with concerns about their pay or entitlements should contact us for free advice and assistance.”
The regulator investigated the Blue Mist Café after the international student lodged a request for assistance.
A Fair Work Inspector issued a Compliance Notice to the company that operated the café, Blue Mist Entertainment Pty Ltd, in November 2020 after forming a belief the worker had not been paid any wages for seven days of work she performed at the cafe in July 2020.
The inspector believed the worker was owed minimum wages, as well as penalty rates for weekend work under the Restaurant Industry Award 2020.
The Compliance Notice required Blue Mist Entertainment Pty Ltd to calculate and back-pay the worker’s outstanding entitlements. Blue Mist Entertainment Pty Ltd was placed into liquidation last year, preventing the Fair Work Ombudsman from securing a penalty against the company. The worker remains unpaid.
Judge Nicholas Manousaridis found that there was a need to impose a penalty to deter Mr Mohamed, who continues to hold a number of offices in proprietary companies, and others from failing to comply with Compliance Notices.
“The penalty should be set at a level that should signal not only to employers in the restaurant and café industry, but to all employers that a wilful disregard of a lawfully issued (Compliance) Notice will be met with a significant penalty,” Judge Manousaridis said.
