Surprise inspections of Hobart food businesses have led to more than $129,000 being recovered for 180 underpaid workers across the city’s fast food outlets, restaurants and cafes.
Fair Work Ombudsman inspectors visited 28 businesses across Hobart’s CBD, North Hobart, Bellerive, Howrah, Rosny, Rosny Park and Lindisfarne last year.
Of those, 22 were found to be breaking workplace laws.
The most common problems were underpayment of base rates at 20 businesses and penalty rates at 18 businesses, along with pay slip and record-keeping failures.
The largest single recovery was $19,277 for 27 employees at one business, where workers were not paid proper minimum rates, overtime or penalty rates.
The regulator issued 12 fines totalling $24,570 to eight businesses for record-keeping and pay slip breaches.
It also issued 31 compliance notices to 22 businesses, resulting in the total $129,674 in recovered wages.
One North Hobart business showed significant improvement after previously back-paying 55 workers $150,905 following inspections in 2019.
The business director said he had changed his practices since the regulator’s first visit.
“When the FWO first visited in 2019, I was new in the industry and had no clue about the Award or that I was doing anything wrong,” he said.
“I was hesitant to talk to FWO at first, but once I started dealing with them I realised they are impartial and will assist me in understanding my obligations.”
Fair Work Ombudsman Anna Booth said the findings show why improving compliance in the sector remains a national priority.
“These Hobart wage recoveries for underpaid employees show that many workers in the fast food, restaurants and café sector – who are often vulnerable young people or visa holders – are still missing out on their lawful wages,” Booth said.
“Invest the time in getting your obligations right, rather than facing fines and possible court action.”
Hospitality Tasmania CEO Steve Old welcomed the effort.
“Our members want to do the right thing and create fair and productive workplaces for their employees,” Old said.
