Daily News

View All News

Australia – Fast food outlet in court over alleged casual worker underpayments

26 November 2020

Australia’s workplace watchdog the Fair Work Ombudsman launched legal action in the Federal Circuit Court against the operator of a fast food outlet in Brisbane’s West End.

Facing the court is SMC Food Truck Pty Ltd. The Ombudsman investigated the outlet as part of audits of 44 fast food, café and restaurant businesses in the West End food precinct between December 2018 and March 2020.

A Fair Work Inspector issued a Compliance Notice to SMC Food Truck in February this year after forming a belief the company had underpaid casual employees between October 2018 and February 2020. The inspector believed casual employees had been underpaid their casual, overtime, weekend and public holiday entitlements under the Fast Food Industry Award 2010.

The Ombudsman alleges the company, without reasonable excuse, failed to comply with the Compliance Notice which required it to calculate and back-pay the workers’ entitlements.

“In line with the FWO’s proportionate approach to regulation during the Covid-19 pandemic, the FWO made several attempts to secure voluntary compliance before commencing legal action,” the Fair Work Ombudsman said.

Fair Work Ombudsman Sandra Parker said the regulator would continue to enforce workplace laws and take businesses to court where lawful requests are not complied with.

The regulator is seeking a penalty against SMC Food Truck. It is also seeking a court order for the company to comply with the compliance notice, which includes rectifying any underpayments in full, plus superannuation and interest.

The company faces a maximum penalty of AUD 31,500 (USD 23,914).