As a result of surprise inspections that were carried out earlier this year, the Fair Work Ombudsman has recovered $281,729 in underpayments across 43 businesses in Newcastle.
The venues were mostly ‘cheap eat’ venues according to Fair Work, and were located across suburbs Broadmeadow, Cameron Park, Hamilton, Islington, Maryland, Mayfield, and Merewether.
The most common breach was alleged underpayment or failure to pay penalty rates for evening, night, weekend, and public holiday periods which occurred across 29 businesses.
19 businesses were also alleged to have underpaid workers minimum wages for ordinary hours.
The Fair Work Ombudsman issued 26 compliance notices during the inspections, which has seen $277,006 recovered for 302 workers.
Eight infringement notices for pay slip and record-keeping breaches were also given, with $22,497 in fines paid.
The highest amount recovered from a single business was $82,583 where it was alleged two casual fast food workers were not paid casual minimum wages, and their public holiday and weekend loading.
“These disappointing Newcastle findings are part of a national food precincts program where we’ve often found that low-cost dining comes at the expense of workers’ lawful wages,” says Fair Work Ombudsman Anna Booth.
“Employers must follow all wage laws, including penalty rates which generally serve as compensation for those working at times when most people are not. Those doing the wrong thing are being found out and held to account.”
The Fair Work Ombudsman reports that two businesses are still under investigation.
