Australia’s Fair Work Ombudsman has recovered AUD 582,450 (USD 440,431) in wages for 376 underpaid workers after auditing the city of Hobart’s ‘cheap eats’ food precincts.

Fair Work Inspectors targeted 45 businesses and found that almost 80% failed to comply with workplace laws. Of the 35 businesses in breach, 32 had underpaid their workers and 24 had failed to meet pay slip and record-keeping requirements.

The most commonly found breaches were failures to pay minimum wages (27 businesses), followed by a failure to pay casual loading (casual worker wages) (21 businesses).

The businesses back-paid a total of 376 employees.

Fair Work Ombudsman Sandra Parker said the unannounced audits were part of a national program that has also targeted cheap eat precincts in Melbourne, Brisbane, Sydney, Adelaide and Perth.

“Our intelligence-led activities have hit food precincts around the country because they commonly employ a high proportion of young and migrant workers who can be vulnerable to exploitation,” Parker said. “Protecting vulnerable workers such as students and visa holders and improving compliance in the fast food, restaurants and cafés sector are ongoing priorities for the Fair Work Ombudsman.”

In response to the breaches, the FWO issued 34 Compliance Notices and 22 Infringement Notices.

Fast food, restaurants and cafés matters made up 50% of the FWO’s new litigations in the 2019-20 year.

Last week, Australia’s Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill 2021 was passed in Parliament. Amendments in the bill focus on casual employment and addresses issues around ‘double dipping’ with respect to casual employment.