Members / RESTAURANT PENALISED $300,000 FOR PAYING STAFF $11 AN HOUR.

  • Anthony McConnon
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RESTAURANT PENALISED $300,000 FOR PAYING STAFF $11 AN HOUR.

It is recognised that nobody goes into business without first having the objective of making money. But the courts take a dim view of companies that exploit workers to increase the profitability of their businesses.

A case in question is a Sydney Malaysian restaurant who deliberately underpaid their employees and falsified records to try and disguise the underpayments. The result they copped a $300,000 penalty.

But here is where it gets tricky. The restaurateurs claimed they relied upon industry information from other restaurants to set their wage rate at $11 per hour.

The Federal Court rejected this defence and said that “researching black market wage rates is not the way to go” and when you have an employer association ready and available to give advice there is no way and employer should be ignoring or be ignorant of legislated award rates of pay.

The Tasmanian Hospitality Association are there for all our members and offer up to date information on your employment obligations so do not fall for the trap of this Sydney Restaurant.

Alan Hollway Industrial Relations Manager

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