Chinese nationals working at an Adelaide take away food shop were paid as little as $12 an hour, a Fair Work Ombudsman investigation has revealed.
The overseas workers, some of them in Australia on the 417 working holiday visa, were short changed almost $36 000.
The Fair Work Ombudsman identified the underpayment during a spot check of the business, in the Rundle Mall precinct, last year.
The business, which has since voluntarily repaid the money owed, was audited as part of a national campaign focussed on the hospitality sector.
The Fair Work Ombudsman found that employees were paid flat hourly rates ranging from $12.33 to $16.15 for food preparation, cleaning and customer service duties.
New staff started on lower rates of pay, while long serving workers were paid more. Calculations identified that 24 staff were underpaid a total of $35 900 – an average of about $1500 each, in 2013-2014. One employee was underpaid almost $4000.
“These workers should have been getting more than $17 an hour, plus penalty rates for weekend and public holiday work,” says Fair Work Ombudsman, Natalie James.
However, inspectors decided against enforcement because the business has no history of non compliance, cooperated with the investigation and promptly back paid staff all outstanding entitlements.
“We’re confident these underpayments were inadvertent and a result of the employer’s lack of awareness of their obligations, rather than anything sinister,” James said.
James says the case does, however, highlight the need for Adelaide business owners to ensure they are fully aware of their obligations to employees under federal workplace laws.
“Mistakes like this can add up over time, leaving an employer with a hefty bill for back payment of wages they were not budgeting for,” she said.
Other recent recoveries in Adelaide include:
- $18,900 for two workers at a Hindmarsh wholesale business underpaid their minimum hourly rates and weekend penalty rates,
- $8200 for a shop assistant at a Burnside retail store underpaid penalty rates for weekend work,
- $6900 for an adult apprentice tradesman at a St Agnes business underpaid the minimum hourly rate, and
- $5300 for eight workers at an Oaklands Park fast food business underpaid their minimum hourly rates and weekend penalty rates.
Online tools available at www.fairwork.gov.au include calculators to determine the correct award and minimum wages for employees, templates for pay slips and time and wages records and a range of Best Practice Guides.
Employers and employees seeking assistance can consult the range of free tools and resources available on the website, or call the Fair Work Infoline on 13 13 94 . A free interpreter service is also available on 13 14 50.
