Restaurant Franchisee in Perth - Facing Court
- Aug 26, 2017
- 2 min read
After previously having been warned in 2013 about the need to comply with minimum award standards, another franchisees from a popular chain of restaurants in Perth is now facing court over fresh allegations.
The newest franchisee to face the courts is located in Armadale, Western Australia. It is alleged this franchisee underpaid approximately $67,000 over a nine-month period between December 2014 and September 2015.
The staff involved include some of Australia's most vulnerable workers - juniors. Overall there are 27 employees involved in this latest action.
So where did they go wrong ?
This franchisee is alleged to have paid a "flat rate" of pay which was under the award standard. Which means the employees were getting the same rate of pay no matter which days or hour they worked.
"Flat Rates" or "Salaries" are permissible under the Restaurant Industry Award 2010 but these rates or salaries cannot be for less than the minimum standards in the award - such was the case here.
Not the first franchisee in this chain
Earlier this year, another franchisee in this chain, unconnected to this newest one was handed penalties from the Federal court for underpaying juniors and overseas workers by approximately $28,000. This franchisee not only had to pay the money to the employees they were also handed $37,500 in fines.
Fair Work Ombudsman had warned this individual in 2013 about the need to comply with minimum standards.
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Our Promise to you
Burgess Group Services is backed by industrial relations experts who can read and interpret awards such as the Restaurant Industry Award 2010 . So we will advise you if the rates or salaries you propose for someone is compliant.
If you want a check of your operations without signing on for full payroll systems - we can do that too. We provide a health check of your current payroll systems and provide you a report with full recommendations if there is any concerns.
Contact us today to discuss what options we can provide you.
Source: [Fair Work Ombudsman]
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