Crown Casino cafe fined $250,000 for 'egregious' underpaying of staff
4 February 2019
Sydney Morning Herald
A cafe at Crown Casino has been fined more than a quarter of a million dollars for underpaying 54 workers.
The Federal Circuit Court penalised Ital One Holdings Pty Ltd $217,000 and its director, Len Di Pietro, $40,000 for underpayments at Cafe Baci at Southbank in 2015 and 2016.
The underpaid staff worked as waiters, kitchen hands, chefs and in other roles.
The underpaid staff worked as waiters, kitchen hands, chefs and in other roles.Credit:Rob Homer
Judge Heather Riley said the company's conduct was "particularly egregious" given the court had previously found it broke workplace laws on three similar occasions.
"The respondents have shown no remorse but sought to minimise their behaviour with complaints of being busy," she said.
The Fair Work Ombudsman pursued the company for underpaying 54 workers a combined $73,347 through its use of flat rates, which undercut entitlements for ordinary hours, overtime, casual and penalty rates for weekend, public holiday, late night and early morning work.
The affected employees, who worked as waiters, kitchen hands, chefs and in other roles, included 25 visa holders from countries including France, Italy and India.
The workers were mainly on student and 417 working holiday visas.
The penalties came after three former workers took their own actions in the Federal Circuit Court, in which Ital One Holdings was ordered to back pay staff more than $32,000 in 2014 and 2015.
Fair Work Ombudsman Sandra Parker said the case showed repeated breaches of the Fair Work Act would be met with serious consequences.
"We have no tolerance for an employer that fails to act on our advice, particularly where a court has previously ordered that same employer to back-pay workers," she said.
Judge Riley said it was the responsibility of businesses to work out what employees should be paid and ensure they're paid correctly.
"The need for general deterrence is a significant factor in this matter, given the level of disputes in the cafe and restaurant sector, and the vulnerability of many of the employees in that industry," she said.
Ms Parker said all workers in Australia had the same rights at work, regardless of citizenship and warned businesses who underpay migrant workers would be prosecuted.
AAP