Fair Work Ombudsman
Citation: FWO-2023-06-08-sharetea-audits-media-release
At a glance
- Penalty
- $90,000
- Employees affected
- 36
- Awards cited
- MA000017, MA000027
What happened
The Fair Work Ombudsman investigated 14 Sharetea franchise outlets after receiving reports of potential underpayments. The investigation, which began in April 2022, involved stores in Sydney, Melbourne, Brisbane, and Canberra. Inspectors found that only five of the 14 outlets complied with workplace laws, including the Fast Food Award 2010 and 2020. A total of 36 workers were affected, with $89,952 in unpaid wages recovered. One Sydney store accounted for $78,711 of the recovered amount, impacting 18 employees. The franchisee operating that store is no longer in business.
What was decided
The Fair Work Ombudsman recovered $89,952 in unpaid wages for 36 workers and issued $17,428 in fines for record-keeping and payslip breaches. Four Compliance Notices were issued, recovering $88,893 for 29 employees. One business voluntarily rectified $1,060 for seven employees. Inspectors found failures in paying casual minimum wages, penalty rates, and overtime rates. The investigation focused on the fast food, restaurant, and café industry, highlighting the vulnerability of many workers. The franchisor, Sharetea Australia Pty Ltd, was not found to be involved in the contraventions and had taken steps to educate franchisees.
What it means for employers
Franchisors and franchisees must ensure compliance with workplace laws, including those related to wages, penalty rates, and record-keeping. The Fair Work Ombudsman has tools and resources available to assist employers. Failure to comply can result in significant financial penalties and enforcement action. Franchisors can be held liable for the actions of their franchisees if they knew or should have known about potential breaches.
What it means for employees
Employees, particularly visa holders, should be aware of their workplace rights and contact the Fair Work Ombudsman if they suspect underpayment or other violations. Resources are available to help employees understand their entitlements and seek assistance.
Every statement above is drawn from the published decision. Read the original here:
https://www.fairwork.gov.au/newsroom/media-releases/2023-media-releases/june-2023/20230608-sharetea-audits-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 →