Wage theft totalling $40,000 recovered for 99 underpaid workers

More than $40,000 has been recovered for 99 underpaid workers, after a joint operation between the Fair Work Ombudsman and the Australian Securities and Investments Commission.

Inspectors from Fair Work and ASIC raided 48 small to medium-sized businesses in and around Melbourne’s city precinct, including the suburbs of North Melbourne, Port Melbourne, Balwyn and Carlton.

Multiple industries targeted

The targeted businesses included accommodation and food services, rental, real estate, hiring and construction industries, and were run by first-time directors.

None had ever been investigated by the Fair Work Ombudsman.

22 businesses breaching workplace laws

Almost half of businesses investigated were found to be breaching workplace laws – with 22 failing to provide proper pay slips and failing to keep proper wage and time keeping records, or failing to pay proper wages and entitlements, or both.

The largest underpayment happened at a noodle bar located in the CBD that ripped off 14 workers a total of $8,694, by failing to pay legal minimum hourly rates and penalty rates over a six-month period.

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An exercise in education and on-the-spot fines

The Fair Work Ombudsman said it issued two formal cautions, and eight Infringement Notices (on the spot fines) totalling $7,020.

A Compliance Notice was issued to one restaurant, requiring the employer to back pay $5,303 to 14 workers.

All businesses agreed to back pay employees in full after being educated by inspectors.

In total, 99 employees have been back paid $39,362 by 14 separate businesses.

The remaining 26 businesses involved in the audits were found to be fully compliant with the Fair Work Act.

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If you can’t afford to pay your workers, you can’t afford to be in business

Industrial relations expert Miles Heffernan from Fair Work Act Claims said if a business cannot afford to pay their workers their legal wage, they shouldn’t be in business.

“It’s quite simple, you provide pay slips, you keep proper wage and time records and you pay people according to the Modern Award that they work under,” he said.

“If all that is too hard for you, then there is no way that you should be running a business – after all, if you can’t handle basic wages and human resources, how to do you handle stock, orders, equipment, expenses and other obligations required by other regulators like food authorities?

“The truth is, despite constant whinging and excuses from business groups, the fact is that wage theft is almost always deliberate, and a way for greedy employers to steal money from their hard working employees, and it’s got to stop.”

Ignorance no excuse

Fair Work Ombudsman Sandra Parker said ignorance is no excuse for underpaying employees.

“During our surprise visits of several Melbourne workplaces, we were alarmed to discover that many first-time company directors were not aware of their lawful obligations under Australia’s workplace relations laws,” Ms Parker said.

“If you are new to running a business, it is your responsibility to ensure you understand your workplace obligations before you hire any employees.”

Sandra Parker – Fair Work Ombudsman.

The Fair Work Ombudsman has vowed that all non-compliant businesses that were put on notice are now red flagged and may be re-audited in future.

If you have not received your proper wages and entitlements, or if you have been unfairly dismissed from employment, or if you have experienced discrimination or sexual harassment, we can help.

Please call our specialist team at Fair Work Act Claims on

1300 359 516

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Fair Work Act Claims is a private consultancy and advocacy firm and has no affiliation with any commission, tribunal or government agency.