Fair Work Ombudsman
Citation: FWO-2022-04-01-lilyvale-eu-media-release
At a glance
- Penalty
- $3,000,000
- Employees affected
- 199
- Awards cited
- MA000137
What happened
Lilyvale Hotel Pty Ltd, operating the Shangri-La hotel in Sydney, underpaid employees between 2013 and 2019. The Fair Work Ombudsman investigated and found the company failed to ensure annualised salaries covered minimum overtime and penalty rate entitlements under the Hospitality Industry (General) Award 2010. This resulted in underpayments of overtime, penalty rates, meal break penalties, and annual leave loading. A total of 199 current and former employees, including those on various visas, were affected. The roles impacted included cooks, chefs, attendants, porters, and those in purchasing, engineering, room service, and front office roles.
What was decided
Lilyvale Hotel Pty Ltd entered into an Enforceable Undertaking (EU) with the Fair Work Ombudsman. The company has back-paid employees a total of $3.09 million, including interest. Individual back-payments ranged from $16 to $119,447. The EU requires Lilyvale Hotel to calculate and back-pay any remaining amounts, plus interest and superannuation, within four months. The company must also engage an auditing firm, make a $90,000 contrition payment, apologise to staff, provide workplace relations training, publish notices, and offer employees the option of weekly or hourly pay instead of annualised salaries. The Fair Work Ombudsman considered an EU an appropriate outcome due to Lilyvale Hotel’s cooperation and commitment to rectifying the underpayments.
What it means for employers
Employers paying annual salaries must regularly check that wages cover all minimum lawful entitlements for the hours employees work. A 'set-and-forget' approach to annual salaries is not acceptable. Employers should engage auditing firms to ensure workplace compliance.
What it means for employees
Employees receiving annual salaries should ensure their pay covers all minimum lawful entitlements. They can visit www.fairwork.gov.au or contact the Infoline on 13 13 94 for information and assistance.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2022-media-releases/april-2022/20220401-lilyvale-eu-media-releaseWant more cases like this?
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This summary was drafted by AI 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 →