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UnderpaymentsJanuary 21, 2015
A Sydney restaurant has closed up shop after investigations into the underpayment of a cook from South Korea found that he was significantly underpaid. The Chatswood restaurant operated under the name Carre Noir, and was situated on the very busy concourse pedestrian area on Victoria Street.
The cook was employed for 13 months and came to Australia for the job on a 457 skilled visa. He commenced working on an agreed pay package, however; it was found he was underpaid by $51,158. The employers did not meet the employment agreement.
The cook complained to the FWO that he was being underpaid by his employer. It turns out the restaurant owner had only paid him $15,000 for the 13 month period. This significant underpayment has resulted in the business owner agreeing to an enforceable undertaking. Since the investigation, the restaurant has ceased to operate and the owner, Samuel Han, has agreed to work with the FWO to rectifying the absurd workplace practices he once operated.
As part of reconciliation the owner must:
– Repay the employee by the end of March in full;
– Write a formal apology to the employee;
– Put an advertisement in the community local newspaper expressing the businesses sincere regret;
– Make a $1000 donation to the NSW Working Women’s Centre towards education of workplace rights and obligations and;
– Conduct self-audits of workplace compliance at six monthly intervals for three years upon re-employing staff in the future.
Business owners who are running a small business must understand the severity of workplace obligations. If employers are equipped with the correct processes, employers and employees alike working in a business will in turn appreciate fairness in the workplace and show respect and dedication to the running of the business.
However, should business owners fail to correctly pay staff and comply with workplace laws, their employees will be the first ones to notify the Fair Work Authorities.
If you would like to safeguard your business, call Employsure today. We can conduct a full audit of your business and implement the correct policies and procedures to ensure that you are meeting the obligations of the Fair Work Act. In turn, you will avoid employee claims, investigations and tribunals in court.
Call Employsure today on 1300 651 415 or fill in the form below.
*Information sourced via the Fair Work Ombudsman website.