The Fair Work Ombudsman has secured $307,802 in penalties in the Federal Circuit Court in response to 154 workers across three PappaRich restaurants in Sydney being underpaid $74,000.
A total of $34,425 in penalties have been imposed against Loke Cheng Wong, manager-operator of the PappaRich franchise outlet at Macquarie Park, and former manager-operator of PappaRich franchise outlets in Chatswood and on Liverpool Street in the Sydney CBD.
In addition, two companies Mr Wong is a director and part-owner of - PPR Ryde (NSW) Pty Ltd and Gateharvest Pty Ltd – have been penalised $141,751 and $131,626, respectively, for their involvement in some of the underpayments.
Between May and July in 2017, PappaRich employees were paid flat rates as low as $13 to $14.50 per hour, resulting in underpayment of their ordinary hourly rates, weekend and public holiday penalty rates, overtime rates and casual loadings under the Restaurant Industry Award.
A number of the affected employees were migrant workers on student and working holiday visas. Fair Work Ombudsman Sandra Parker said inspectors discovered the PappaRich underpayments during surprise audits.
“This penalty should serve as a warning to employers who choose to pay migrant workers unlawfully low flat rates rather than the applicable minimum Award. All employees have the same rights under Australia’s workplace laws, regardless of visa status, and any migrant workers with concerns about their pay should contact us,” Ms Parker said.