Fair Work Ombudsman
At a glance
- Hotel Frangos and Café Koukla
- $104,000
- 97
- MA000000
What happened
the Applicant and her husband operated Hotel Frangos and Café Koukla in Daylesford, Victoria. They deliberately underpaid 97 staff a total of $321,202 between May 2017 and July 2019. The underpaid workers included 15 juniors, aged 15 to 20, and visa holders from Nepal, Pakistan, and Armenia. Two Nepalese cooks were also required to work unreasonable hours. The Fair Work Ombudsman investigated after receiving requests for assistance.
What was decided
The Federal Circuit and Family Court imposed a $95,000 penalty on the Applicant and a $9,000 penalty on the Second Respondent. The court also ordered the Applicant to back-pay all workers, including superannuation. The judge found the underpayments were deliberate and significant, noting the Applicant had benefited financially from the underpayments for several years. The court acknowledged the impact of the long working hours on the two cooks’ health and well-being.
What it means for employers
Employers must ensure all employees are paid their minimum lawful entitlements. Deliberately underpaying staff, particularly vulnerable workers like juniors and visa holders, will result in significant penalties and back-payment orders. Careful record-keeping and compliance with award obligations are essential.
What it means for employees
Employees, including visa holders and young workers, should be aware of their pay and entitlements. If you suspect you are being underpaid, contact the Fair Work Ombudsman for assistance. It is important to document any concerns about your employment.
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