Court fines hospitality group for underpaying Sydney bar staff
December 9th, 2009
The operator of a string of Sydney nightspots has been penalised for underpaying hundreds of its bar staff.
The Bavarian Hospitlality Group has been fined $3750 in the Chief Industrial Magistrate’s Court of NSW.
Chief Industrial Magistrate Gregory Hart imposed the fine yesterday following a prosecution by the Fair Work Ombudsman.
The company admitted inadvertently underpaying approximately 1018 casual employees a total of $334,000 between October, 2007 and November, 2008.
The employees worked at Lowenbrau Kellar (CBD), Bavarian Bier Cafe (Manly, York Street, O’Connell Street, Entertainment Quarter and Parramatta), Uber Bar (CBD) and The Argyle (CBD).
Fair Work inspectors discovered the underpayments last year during a national campaign which ultimately recouped $1.1 million for 3863 employees.
Bavarian signed its employees tow orkplace agreements in 2007 which paid slightly above the minimum hourly rate at that time – but which did not provide for future increases.
The oversight resulted in the workers being paid less than the minimum hourly rate after minimum pay rates rose on October 1, 2007. The largest underpayment of a single worker was $3642.
Bavarian has rectified all underpayments, except for $33,000 still owing to former employees it cannot locate. The company is in the process of completing documentation to submit this money to the Collector of Public Monies.
Fair Work Ombdusman NSW Director Mark Davdison says that the underpaymetn of workers in any circumstance is a serious matter.
“While I accpet that Bavarian relied upon incorrect legal advice with respect to its workplace agreements, it serves to remind employers that the ultimate responsibility for compliance with workplace law is theirs alone,” he said.
“Doubtless the company has saved itself from a much bigger penalty by fully co-operating with us and volunatrily rectifying the underpayments.”
Employers or employees seeking information or assistance should contact the Fair Work Infoline on 13 13 94 or visit www.faiwork.gov.au For translations call 13 14 50.
The Fair Work Ombudsman promotes harmonious, productive and co-operative workplaces It also monitors compliance and investigates breaches of national workplace laws.
www.fwo.gov.au Wednesday 9th December 2009