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Australia – Workers in Darwin, including casuals, paid over $270,000 following underpayment investigations

13 September 2022

Australia’s workplace watchdog the Fair Work Ombudsman has recovered AUD 393,453 (USD 271,846) in wages for 479 underpaid workers, including casual and part-time workers, after investigating employers in Darwin food precincts.

Fair Work Inspectors targeted 48 businesses across 22 suburbs, including Darwin City, Casuarina and Palmerston City, of which 76% were non-compliant.

Businesses were selected for surprise inspections based on their risk of breaching workplace laws. At-risk businesses had a history of non-compliance with the Ombudsman, had been the subject of anonymous tip-offs, or employed vulnerable visa holders. Visa holders were found at two-thirds of businesses.

Of the 34 businesses found to be in breach, 31 had underpaid their workers and 10 had failed to meet pay slip and record-keeping requirements.

Fair Work Ombudsman Sandra Parker said the audits were part of a national program that has targeted food precincts in Melbourne, Brisbane, Sydney, the Gold Coast, Perth, Adelaide, Hobart and Launceston.

The most common breaches found were the failure to pay penalty rates or casual loading (28 businesses), followed by underpayment of the minimum hourly rate of pay (13 businesses) and the failure to pay correct overtime allowances (13 businesses). In total, Darwin businesses back-paid 479 employees, with the largest recovery being AUD 94,687 (USD 65,447) from one business for 15 casual and part-time employees who had been underpaid their minimum wages and weekend penalties.

“It is disappointing to find high rates of non-compliance in Darwin’s fast food, restaurant and café sector, something that has been found in many cities nationally. Employers can’t pick and choose which wage laws they follow and those doing the wrong thing are being found out,” Parker said.