Fair Work Ombudsman
Citation: FWO-2023-04-28-melotte-litigation-media-release
At a glance
- Penalty
- $320,000
- Employees affected
- 97
- Awards cited
- MA000017
What happened
The Fair Work Ombudsman has commenced legal action against Louise Maree Melotte and Travis Francis Melotte, a married couple who operated Hotel Frangos and Café Koukla in Daylesford, Victoria. They are accused of allegedly underpaying 97 staff a total of $320,929 between May 2017 and July 2019. The affected workers included 15 junior employees aged 15 to 20 and several visa holders from Nepal, Pakistan, and Armenia. The alleged underpayments involved insufficient salaries for full-time employees and unpaid entitlements for casual employees, including minimum wage, casual loading, overtime rates, and penalty rates. Two cooks on Regional Sponsored Migration Scheme visas were allegedly required to work excessive hours, averaging nearly 50 hours per week.
What was decided
The Fair Work Ombudsman is seeking penalties against Louise Maree Melotte and Travis Francis Melotte for alleged underpayments and unreasonable additional hours. Ms Melotte faces penalties of up to $12,600 per breach for multiple underpayment breaches. Both individuals face penalties of up to $12,600 per breach for the alleged unreasonable additional hours breaches. The FWO is also seeking a court order for full back-payment of wages, plus superannuation and interest, totaling $320,929. Loelal Pty Ltd, the company that directly employed the workers, is in liquidation. A directions hearing is scheduled for June 1, 2023.
What it means for employers
Employers must ensure salaries cover all minimum entitlements for the hours employees work, avoiding a 'set-and-forget' approach. Businesses need to be particularly aware of the risks when paying salaries and the importance of protecting vulnerable workers, such as visa holders and young employees. Employers should review their payroll practices to ensure compliance with relevant awards and legislation.
What it means for employees
Employees, especially visa holders and young workers, should be aware of their workplace rights and entitlements. If you suspect you have been underpaid or required to work unreasonable hours, seek advice from the Fair Work Ombudsman.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2023-media-releases/april-2023/20230428-melotte-litigation-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 →