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Fast food sector busted for underpaying Korean migrant workers

Adrian Flores
Adrian Flores
25 September 2020 1 minute readShare
Fast food

A national investigation has revealed unpaid wages for 284 workers from 51 fast food outlets, restaurants and cafés employing Korean workers.

The investigation from the Fair Work Ombudsman found that 71 per cent of the 51 audited outlets were non-compliant with workplace laws.

Of these 36 businesses in breach, 61 per cent had underpaid employees and 75 per cent had not met payslip and record-keeping obligations, while the most common breaches found were underpaying penalty rates (26 per cent) and failing to issue payslips (22 per cent).

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As a result of the breaches, inspectors issued 20 compliance notices requiring employers to rectify breaches of the law, resulting in the full back-payments of $161,551.

Total recoveries were $95,984 for 65 workers at five Melbourne businesses; $31,376 for 139 workers at six Brisbane businesses; $22,827 for 31 workers at four Sydney businesses; $8,259 for 24 workers at three Canberra businesses; and $3,105 for 24 workers from four Perth outlets.

 

Recoveries from individual businesses ranged from $18 for four employees in a Perth business to $56,688 for 11 employees of a Melbourne business.

In addition, 34 infringement notices (total penalties of $39,480) were given for payslip and record-keeping breaches, and two formal cautions.

Fair Work Inspectors investigated food businesses in Brisbane (13), Sydney (12), Perth (11), Melbourne (10) and Canberra (five) between August and December last year.

Inspectors interviewed employees, managers and store owners during site visits and checked employment records and payslips.

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The FWO said the audits occurred due to previous food sector investigations raising concerns about the exploitation of workers from Korea, including students, as well as intelligence from young and migrant employees indicating exploitation.

Further, it noted that Korean migrants made up a significant number of the affected employees of businesses in breach, particularly student visa holders, with migrant workers from a range of other countries also impacted.

Fair Work Ombudsman Sandra Parker said the underpayment of migrant workers, including young students, was unacceptable.

“This investigation shows the Fair Work Ombudsman prioritises matters involving migrant workers, who may be particularly vulnerable due to visa status and have limited knowledge of their rights,” Fair Work Ombudsman Sandra Parker said.

“While this investigation commenced prior to the pandemic, the FWO continues to enforce workplace laws in the food sector as a priority.

“We do so in a proportionate manner, knowing that COVID-19 has had a significant impact on many businesses in the fast food, restaurant and café sector.”

Fast food sector busted for underpaying Korean migrant workers
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Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

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