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FWOFair Work Ombudsman · 8 August 2023

Fair Work Ombudsman

Citation: FWO-2023-08-09-the-lodge-penalty-media-release

At a glance

Respondent
The Lodge MGL Pty Ltd
Penalty
$5,500
Employees affected
3

What happened

The Fair Work Ombudsman investigated The Lodge MGL Pty Ltd, which operates a café called Write Coffee Reserve in Menai, southern Sydney. Three workers, including a 17-year-old, a Nepalese kitchen attendant on a student visa, and an adult, were employed between December 2020 and April 2021. The Fair Work Ombudsman received requests for assistance from the workers. A Compliance Notice was issued in August 2021, alleging unpaid wages. The workers were back-paid only after the Fair Work Ombudsman commenced legal action.

What was decided

The Federal Circuit and Family Court imposed a $5,500 penalty against The Lodge MGL Pty Ltd for failing to comply with the Compliance Notice. The court found the company did not calculate and back-pay entitlements to the three workers. Acting Fair Work Ombudsman Kristen Hannah stated that legal action will be taken against businesses that ignore Compliance Notices. The workers received full back-payment of their wages.

What it means for employers

Employers must comply with Compliance Notices issued by the Fair Work Ombudsman. Failure to do so can result in penalties in court. The Fair Work Ombudsman prioritises compliance in the fast food, restaurant, and café sector, particularly regarding vulnerable workers.

What it means for employees

Employees who have concerns about their pay or entitlements should contact the Fair Work Ombudsman for free advice and assistance. Visa holders can seek help without fear of visa cancellation through the Assurance Protocol.

underpaymentgeneral-protectionsyoung-workersvisa-protectionpenalty-rates

Every statement above is drawn from the published decision. Read the original here:

https://www.fairwork.gov.au/newsroom/media-releases/2023-media-releases/august-2023/20230809-the-lodge-penalty-media-release

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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 →

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