Degani Bakery and Cafe outlets underpaid staff, Fair Work Ombudsman finds


August 07, 2018 19:05:05

More than $44,000 in unpaid wages has been recovered for dozens of employees at Degani Bakery and Cafe outlets, after an investigation discovered the favored meals chain had failed to satisfy primary office necessities.

Key factors:

  • A complete 86 employees have been underpaid at 15 Degani outlets in Melbourne and Rockhampton
  • Some additionally cafes did not maintain correct data of employees funds
  • The Fair Work Ombudsman recovered $44,165 in misplaced wages for workers
  • Fair Work has launched wage investigations into a lot of cafes and eating places

The Fair Work Ombudsman audited 14 cafes in Melbourne, and two in Rockhampton, after receiving what it stated was “a high number of requests for assistance”.

It discovered simply a type of outlets was compliant with office legal guidelines.

Ombudsman Sandra Parker discovered a complete of 86 employees had been underpaid throughout the 15 cafes, recovering $44,165 in misplaced wages.

She stated underpayment and non-payment of penalty charges was the most typical difficulty, however some employees had additionally been paid base charges under these they have been entitled to.

“We uncovered issues with record-keeping at several Degani outlets that hindered our ability to determine exactly how much backpay the employees were owed,” she stated.

“Unfortunately, Degani’s failure to meet basic workplace requirements is common throughout the hospitality industry.”

The ombudsman issued 10 formal cautions, eight compliance notices and 5 on-the-spot fines to the 15 outlets concerned.

There are greater than 80 franchised Degani cafes, eating places and kiosks round Australia.

In February, Fair Work launched courtroom motion towards a Degani outlet in Greensborough, in Melbourne’s north, for allegedly utilizing false data to hide greater than $12,000 in underpayments to staff.

In November final yr an outlet in Mornington, south of Melbourne, was discovered to have underpaid employees virtually $10,000.

The ombudsman has additionally launched investigations into some of Melbourne’s most high-profile eateries in current months over accusations they’ve underpaid employees, and the difficulty of wage theft has develop into a subject of widespread dialogue amongst business leaders.










First posted

August 07, 2018 10:18:32

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