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Darwin Restaurant Penalised After Failing To Back-pay Cook

Darwin restaurant penalised after failing to back-pay cook

A Darwin restaurant has been penalised after failing to back-pay a cook and failing to comply with a Compliance Notice.

The Federal Circuit Court penalised FMS Holdings $22,050 and company director, Rana Ali Hassan (pictured), an additional $4,410.

Darwin restaurant operators failed to pay proper wages and entitlements

Hassan owns and operates the Bar.B.Q Tonight NT restaurant.

Fair Work inspectors commenced an investigation as a result of receiving a complaint from a cook at the restaurant.

The cook is a migrant worker from Pakistan in Australia on a 457 visa.

The investigation found Hassan failed to pay proper minimum wages and entitlements.

For example, his

  • minimum wage,
  • late night, weekend and public holiday penalty rates,
  • split shift allowances,
  • annual leave on termination
  • and minimum notice of termination or payment in lieu of notice

under the Restaurant Industry Award 2010 and the Fair Work Act 2009.

Compliance Notice

Following the investigation, Fair Work issued Hassan with a Compliance Notice ordering him to repay the cook $15,833.

Hassan initially agreed to a repayment plan to rectify the underpayments.

However, he repaid just $1,250 of the outstanding amount.

Consequently, Fair Work commenced litigation against Hassan and his company.

Court finds contraventions of Fair Work Act

The Court found FMS Holdings and Hassan contravened the Fair Work Act by failing to comply with the Compliance Notice.

In addition to the penalties, the Court ordered FMS Holdings to fully rectify the underpayments detailed in the Compliance Notice, plus interest.

Compliance Notices are not optional

Industrial advocate Miles Heffernan from IR Claims says Compliance Notices are not optional.

“A Compliance Notice is a chance for an employer to rectify underpayments without cost, and those who don’t will end up in court facing huge penalties,” he said.


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