Fair Work Ombudsman
Citation: FWO-2022-11-07-85-degrees-penalty-media-release
At a glance
- Penalty
- $475,200
- Employees affected
- 8
What happened
The Fair Work Ombudsman secured a penalty against 85 Degrees Coffee Australia Pty Ltd, which operates cafes and factories in Sydney. The company exploited eight Taiwanese students between July 2016 and June 2017. The students, aged 20 to 22, were brought to Australia under an internship arrangement with a Taiwan-based company linked to 85 Degrees. They were paid between $1,650 and $1,750 per month for working 60 to 70 hours per week. Each student was underpaid between $50,213 and $58,248. The students worked in factories and cafes in St Peters, Hurstville, and Sydney CBD. They were studying at the Taipei City University of Science and Technology.
What was decided
The Federal Court imposed a $475,200 penalty against 85 Degrees for breaching workplace laws and underpaying the students. The court found the underpayments were deliberate and the students were vulnerable to exploitation. 85 Degrees had back-paid the workers after the Fair Work Ombudsman commenced legal action in 2021. The court also noted breaches related to pay slips, record-keeping, and Fair Work Information Statements. Justice Bromwich stated the company’s senior management should have been aware of Australian law.
What it means for employers
Employers must pay lawful minimum pay rates for all hours worked, regardless of a worker’s nationality or visa status. Companies must ensure they understand and comply with Australian workplace laws, even when dealing with interns or visa holders. Failing to do so can result in substantial penalties.
What it means for employees
Visa holders and migrant workers should be aware of their workplace rights and entitlements. If you have concerns about your pay or entitlements, contact the Fair Work Ombudsman for assistance. The internship arrangement did not negate the students’ entitlement to minimum wage and other protections.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2022-media-releases/november-2022/20221107-85-degrees-penalty-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 →