Australia’s Fair Work Ombudsman has recovered AUD 89,952 (USD 61,122) in unpaid wages for 36 workers after investigating 14 outlets of bubble tea chain Sharetea.

In April 2022, the regulator investigated the Sharetea franchisee-operated stores after receiving tip-offs indicating possible underpayments, supported by the regulator’s intelligence confirming the stores engaged a significant number of vulnerable workers such as Mandarin-speaking visa holders.

Inspectors interviewed employees, managers and owners in person at stores in Sydney, Melbourne, Brisbane and Canberra, and checked employment records and payslips.

Fair Work Inspectors assessed compliance against the Fair Work Act, including with the Fast Food Award 2010 and Fast Food Award 2020. The inspectors found only five of the 14 outlets investigated had met all obligations under the awards.

In response to the alleged breaches by the other nine businesses, Inspectors issued four Compliance Notices, recovering AUD 88,893 (USD 60,402) for 29 employees. For payslip and record-keeping breaches, nine Infringement Notices were issued, with a total AUD 17,428 (USD 11,842) in fines paid.

One business voluntarily rectified AUD 1,060 (USD 720) for seven employees without enforcement action being needed.

Fair Work Ombudsman Sandra Parker said the findings were another warning to those at all levels of franchise chains to ensure they are compliant with workplace laws.

The main issues found by Ombudsman inspectors were the failure to pay the casual minimum wage, including appropriate junior rates; weekend penalty rates and part-time overtime rates; and failing to engage workers for the minimum number of hours for a casual.

Sharetea outlets were also found to have made or kept inadequate records and breached payslip-related requirements under the law.

There was AUD 87,176 (USD 59,200) recovered for 32 workers in Sydney and AUD 2,776 (USD 1,885) for four workers in Canberra. The large majority of underpayments were from one Sydney store where AUD 78,711 (USD 53,451) was recovered for 18 employees.

This franchisee, which also received an Infringement Notice for making or keeping misleading records, is no longer operating any franchise or fast food business.