The operator of Sushi Izu franchise outlets inside Woolworths supermarkets at Double Bay and at Town Hall in Sydney, has reimbursed a short paid staff member more than $5000.
The Fair Work Ombudsman found Sushi Izu owner, Joo Young Ju, had paid a staff a ‘market rate’ of less than $16.50 an hour, after doing a ring around of her competitors to find out what they were paying their employees.
Under the Fast Food Industry Award 2010, the employee involved was entitled to $17.98 an hour for normal hours and penalty rates of up to $39.57 an hour for weekend, overtime and evening work.
Fair Work Ombudsman, Natalie James, says it should be of concern to Woolworths to learn that employees working on its premises were being paid below lawful minimum entitlements.
She noted that Ju’s company, Fine Food Gallery’s employees prepare, pack and display Sushi Izu-branded sushi for their own display fridges, but also for Woolworths fresh food display fridges. Customers select their sushi and pay at the Woolworths cash registers.
James reminded Woolworths that Section 550 of the Fair Work Act provides for accessorial liability – a mechanism through which someone other than the employer who is involved in a contravention of workplace laws may be held accountable.
The 26 year old South Korean backpacker involved is in Australia on a 417 working holiday visa, and was underpaid more than $5000 for just 11 weeks’ full time work.
Ju, who recruited the staff member via a Korean community website, agreed to fully back pay the employee in a workplace pact she has signed with the Fair Work Ombudsman.
As well as short changing the backpacker between December, 2013 and February last year, Ju underpaid his annual leave entitlements.
As Fine Food Gallery has no prior complaints history and Ju cooperated fully with Fair Work inspectors, an Enforceable Undertaking was offered as an alternative to litigation.
The company has given a commitment to ensure future compliance with its workplace obligations under Commonwealth laws.
It will undertake workplace relations training, self auditing of employee wages and entitlements and register with the Fair Work Ombudsman’s online self help tool My Account.
The company also agreed to display workplace notices detailing its contraventions and make a written apology to the affected former worker.
Coles became the first major chain to publicly declare last year it had an “ethical and moral responsibility” to join with the Fair Work Ombudsman and stamp out exploitation of vulnerable trolley collectors.
Coles gave an undertaking to the Fair Work Ombudsman in October that it would revamp its trolley collection services, admitting its former practices were highly vulnerable to exploitation and poor employment practices, including underpayment of wages.
James said the Fair Work Ombudsman was now receiving more complaints from visa holders working in Australia than ever before.
Between 2011/12 and 2013/14, complaints from 417 working holiday visa holders to the Fair Work Ombudsman increased by 382 per cent from 216 to 1042.
In August, James announced a year long review of the wages and conditions of 417 backpackers who do 88 days’ work in regional areas in order to obtain a second visa.
