Fair Work hits Melbourne Café with $28,171 in penalties

The Fair Work Ombudsman (FWO) has hit KRC Pty Ltd, the operators of Black Rock café The Colonel’s Son, and its café manager Rishi Chaudhari with fines totalling $28,171, despite the company’s “last minute attempt” to backpay the affected staff member.

KRC Pty Ltd received a $23,475 penalty while café manager Rishi Chaudhari received a penalty of $4,696 for underpaying and failing to backpay a full-time cook it employed. The company then failed to adhere to a compliance notice from the FWO.

The cook was employed by the café between February 2021 and February 2022. When her employment ended, the company reportedly failed to pay her accrued but untaken annual leave entitlements.

KRC Pty Ltd back-paid the worker $3,410 only after FWO commenced legal proceedings, almost two years after payment was due.

Judge Jonathan Forbes labelled the move a “last minute attempt” spurred on by the legal action, which he said “does not wipe the slate clean”.

“The former employee’s confidence in employment will have been shaken, she has gone without her entitlements for months and the payment was only made when the writing was on the wall for the respondents,” said Forbes.

Forbes said the penalties needed to be “sufficiently serious to send a clear signal” to other employers. “When put on notice as to the serious consequences of non-compliance, putting one’s head in the sand is no excuse,” said Forbes.

“When Compliance Notices are not followed, we will continue to take legal action to protect employees. Employers who fail to act on these notices risk substantial penalties in addition to back-paying workers,” said Fair Work Ombudsman Anna Booth.

“Any employees with concerns about their pay or entitlements should contact the Fair Work Ombudsman for free assistance,” said Booth.

Fair Work recently executed a series of surprise inspections at cafes in Melbourne.

Free interactive courses for employers, managers and employees, including a course on how to respond to compliance notices, are available on the Fair Work Ombudsman’s online learning centre.

Photo by Chevanon Photography.

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