A Geelong juice bar allegedly underpaid workers more than $23,000 before trying to cover it up, according to the Fair Work Ombudsman (FWO).
The operators behind Hello Juice outlets in Geelong and Werribee face investigation after the FWO revealed yesterday it had launched legal action against the retailer.
Operators Skypic Group and Skypac Group, along with general manger Hua Gong, allegedly underpaid 27 employees a total of almost $40,000 during several months in 2017.
Workers at the Geelong store were allegedly underpaid $23,902.47, the FWO said.
Werribee store staff underpaid $14,555.64, the FWO alleged.
Employees were allegedly paid a flat rate as low as $10 an hour, resulting in underpayment of minimum hourly rates, casual loadings and weekend and public holiday penalty rates.
Inspectors discovered the alleged underpayments during “self-initiated” audits, said FWO’s Sandra Parker .
“Enforcing compliance with workplace laws in the fast food, restaurant and cafe sector continues to be a priority for the Fair Work Ombudsman,” she said.
“Employers in this sector are on notice that they must pay all employees according to Australia’s lawful minimum pay rates.”
Ms Gong allegedly gave the ombudsman’s office false or misleading records and breached laws relating to payslips and record-keeping, the FWO said.
Each contravention could cost a penalty of up to $10,800 for the Geelong store and $12,600 for Werribee.
Skypic Group could face up to $54,000 for each contravention and Skypac Group up to $63,000, the FWO said.
The ombudsman was seeking court orders for the companies and Ms Gong to back-pay the employees in full, the FWO said.
A directions hearing is scheduled for the Federal Circuit Court in Melbourne on 15 November.
The FWO conducted surprise on-site audits of more than 70 businesses across the region in May.
A FWO spokesperson declined to say whether other Geelong businesses faced legal action.
“As this matter is before the court, we will not make any further comment,” the spokesperson said.
