Fair Work Ombudsman
Citation: FWO-2023-03-23-subway-penalty-media-release
At a glance
- Respondent
- Subway
- Penalty
- $31,000
- Employees affected
- 3
- Awards cited
- MA000113
What happened
the Applicant, the former director of two Subway franchise outlets in Glenelg, Adelaide, faced legal action from the Fair Work Ombudsman. Three workers employed at these outlets between August 2017 and October 2019 were underpaid entitlements. The Fair Work Ombudsman issued Compliance Notices requiring back-payment, which the Applicant failed to address. The workers were owed a total of $25,597, with one worker owed $22,247 and two younger workers owed $1,750 and $1,600 respectively.
What was decided
the Federal Circuit and Family Court imposed $5,425 in penalties against the Applicant. He was also ordered to back-pay the three workers a total of $25,597. The court emphasized the vulnerability of fast food workers to exploitation and the need to deter similar conduct. Judge Brown highlighted the importance of complying with Compliance Notices. The Fair Work Ombudsman stressed the willingness to take legal action when notices are ignored.
What it means for employers
Company directors are personally liable for failing to comply with Compliance Notices. Employers, particularly in the fast food, restaurant, and café sectors, must ensure they are meeting their obligations regarding employee entitlements. Prioritising the protection of vulnerable employees, such as young workers, is essential.
What it means for employees
Workers who believe they have been underpaid or are unsure of their entitlements should contact the Fair Work Ombudsman for advice and assistance. Young workers should be particularly aware of their rights and seek help if they suspect they are being exploited.
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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 →