Bendigo stores underpay workersTHE Federal Magistrates Court has fined a Bendigo fast food restaurant $46,200 for underpaying staff almost $105,000.
Federal Magistrate Norah Hartnett found Chamdale Pty Ltd, which operates a Hungry Jacks on the corner of High and Thistle streets, had underpaid staff $104,946.87.
The underpayments occurred between July, 2005, and December, 2009, and ranged from 17¢ to $8218.
The Fair Work Ombudsman investigated the company and found almost 30 employees were underpaid more than $1000.
Company director Tom Seboa said his business had also overpaid some staff about $50,000 after relying on Hungry Jacks’ head office to provide information about pay rates.
“Most have been paid back. It is almost finished,” he said.
“There was $105,000 in underpayments but there was also almost $50,000 in overpayment.
“We did everything according to the book but it does not work that way.
“We have got a full-time payroll person that now works with our legal advisers and they make sure they are aware of changes in awards.”
Most underpaid workers were customer service and food preparation staff employed on a casual, full-time or part-time basis.
Chamdale underpaid staff the minimum hourly rate, overtime and public holiday penalty rates, annual leave entitlements and a laundry allowance.
The company had no previous underpayments and volunteered to rectify all owed money.
Ms Harnett imposed a penalty that was 20 per cent of the maximum applicable fine of $231,000.
She said it was important to “send a message to the community at large, and employers particularly, that the correct entitlements for employees must be paid and that steps must be taken by employers (of all sizes) to ascertain and comply with minimum entitlements”.
Fair Work Ombudsman Nicholas Wilson said the penalty should come as a reminder to all employers to pay the correct entitlements.