The Fair Work Ombudsman has recovered $182,596 in unpaid wages for 214 workers after it investigated 39 outlets of the Sandwich Chefs deli carvery franchise across four states and found 82 per cent were non-compliant with workplace regulations.
Inspectors interviewed employees, managers and employers and checked records and payslips and found 18 carveries in Victoria, eight in New South Wales, seven in South Australia and six in Queensland had failed to comply.
Twenty eight cafes had underpaid staff, 16 had breached record-keeping and payslip obligations, the most common failures underpaying minimum hourly rates and weekend penalty rates, and making and keeping employee records.
The regulator had previously uncovered significant underpayments and record-keeping breaches at two Geelong Sandwich Chefs stores during separate earlier proactive audits.
Acting Fair Work Ombudsman Kristen Hannah said the high rate of breaches was disappointing.
“Sandwich Chefs unfortunately is another franchise in the fast food, restaurant and cafés sector where we have found high rates of non-compliance spreading across multiple states. Employers can’t pick and choose which wage laws they follow and those doing the wrong thing are being found out,” Hannah said.
“Improving compliance among franchises and in the food sector are ongoing priorities for the Fair Work Ombudsman, as is protecting vulnerable young workers who can often be the ones cooking and serving the meals.
“We expect all employers in franchise networks to meet their obligations, and there has never been more free tools and resources available to help them get it right. Any workers with wages concerns should also contact us.”
In response to the breaches, inspectors issued 32 Compliance Notices to 26 businesses, recovering $182,596. There were also 18 Infringement Notices issued for record-keeping and pay slips breaches, resulting in $15,330 in fines paid, and three contravention letters and two formal cautions.
Non-compliant businesses were put on notice that future breaches could lead to higher-level enforcement action.
