Posted by Elizabeth Gore-Jones
on 2 August 2024
Recent investigations by the Fair Work Ombudsman (FWO) have shed light on concerning practices within Melbourne’s food sectors.
In a targeted effort, the FWO conducted surprise inspections across 32 food businesses, which revealed that 81% or 26 out of the 32 businesses had breached various workplace regulations. These breaches primarily included underpayment of minimum wages, failure to pay penalty rates correctly and inadequate record-keeping practices.
Fair Work Ombudsman Anna Booth expressed disappointment over the high incidence of breaches, noting that this trend mirrors national findings. She also emphasised the importance of employers adhering to updated wage laws and highlighted the FWO's commitment to promote and ensure compliance, not only in the food sectors but also in other priority sectors.
As a result of these investigations, the FWO issued 22 Compliance Notices, compelling businesses to rectify underpayments. In total, over $58,000 was recovered for 121 employees who had been underpaid. Additionally, fines totaling $31,461 were imposed on businesses that failed to meet payslip and record-keeping obligations. Notably, the largest recovery from a single business also amounted to $13,071 for four casual fast food workers who were paid below the award minimum.
To date, more than $1.2 million has been recovered for workers in Melbourne’s food sector as part of the FWO's national Food Precincts Program. In 2022-23 alone, the FWO secured over $800,000 in court-ordered penalties against food sector employers.
While the recent penalties and recoveries were not related to franchise agreements, it is crucial to note that, under the Vulnerable Workers legislation, franchisors could be held liable for such payments if their franchisees were found in violation. This indicates the importance for franchisors to establish proper checks and protections in their franchise documents to ensure that franchisees adhere to legal standards.
For expert guidance on franchise and business law, contact us today. We specialize in protecting your business and ensuring compliance with all relevant regulations. Reach out to us to learn how we can support your business's legal needs.
