The Fair Work Ombudsman (FWO) has signed an enforceable undertaking with trustees of a Cairns restaurant.
After a snap inspection in 2023 as part of a wider crack down on Cairns food businesses, the FWO identified that waterfront restaurant Villa Romana had underpaid staff and had widespread record keeping failures.
Between May and October 2023, the restaurant underpaid front of house and kitchen staff amounts ranging between $10 and $4,283. At least 28 of the 76 workers were on working holiday or student visas.
Villa Romana has since rectified the $86,873 of underpayments and put in place processes to prevent further underpayments. The restaurant’s trustees will also make a contrition payment of $40,000.
An enforceable undertaking is a legally binding agreement between a regulator and a person or company that has breached legislation. It acts as an alternative to court prosecution. The FWO considered an enforceable undertaking appropriate in this instance because of the restaurant’s cooperation with the investigation, including back-payments and measures to prevent future non-compliance.
The undertaking, which was made by trustees Mesa 3 Pty Ltd and Helen Papagelou, for the Ex-RPH Trust, trading as Villa Romana restaurant, has committed the employer to improving its compliance practices, which includes record keeping.
Fair Work Ombudsman Anna Booth said Villa Romana’s record-keeping failures were extensive.
“Accurate records and payslips are crucial to allow employees to see if their employers are paying them lawfully for all hours worked,” said Booth. “On the underpayments, penalty rates are an important legal entitlement to compensate staff working unsociable hours.”
Booth added that the FWO welcomes the restaurant’s back payments of impacted staff, and its commitments to improve processes going forward.
“Improving compliance in the fast food, restaurants, and cafés sector is a priority for the FWO, including due to its engagement of a significant number of visa holders, who may be vulnerable.
“The FWO encourages employers to take advantage of the tools and resources we offer via our website, the Fair Work Infoline and the Employer Advisory Service to get wages right and maintain correct records,” said Booth.
Photograph by Antonius Ferret / Pexels.
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