Fair Work Ombudsman v Yogurberry World Square Pty Ltd
Citation: [2016] FCA 1290
At a glance
- Penalty
- $146,000
- Employees affected
- 4
- Awards cited
- MA000019
What happened
Yogurberry World Square, a frozen yogurt retailer, employed four workers who worked in the Brisbane store. The employer failed to: classify workers correctly under the Fast Food Industry Award 2010; pay minimum and junior rates of pay; pay casual loading or penalty rates for late-night, weekend, and public holiday work; engage workers for minimum three-hour shifts; pay special clothing allowances; contribute to superannuation; and keep adequate wage records or issue pay slips. Related entities YBF Australia (payroll company) and CL Group (master franchisor) were involved in management of the scheme.
What was decided
The parties reached agreement on all matters except penalty quantum. The court declared multiple contraventions of the Fair Work Act and ordered: the Respondent $75,000 penalty; the Second Respondent $25,000; the Third Respondent $35,000; the Fourth Respondent $11,000. Total penalties: $146,000. The court also ordered mandatory workplace relations training and a six-month compliance audit for all Yogurberry franchises across Australia.
What it means for employers
Fast food and franchise businesses must ensure all employees are correctly classified and paid all award entitlements including penalty rates, casual loading, and superannuation. Payroll and franchisor entities can be held jointly liable. Substantial penalties apply even where underpayment is corrected. Compliance audits and training orders may follow breaches. Franchise systems must be designed to ensure each franchisee complies with award obligations.
What it means for employees
Fast food workers have entitlements to minimum rates, casual loading, penalty rates for unsocial hours, and superannuation regardless of employer size or business structure. Where employers or franchise systems fail to pay, workers should report to the Fair Work Ombudsman. Both direct employers and related entities (payroll, franchisor) can be held liable for underpayment.
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https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2016/2016fca1290Want more cases like this?
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →