Underpayment of Hospitality Workers is Becoming Commonplace


There has been a lot of publicity in the news of late regarding the unfair payment and treatment of certain groups in the workplace. Minority groups are often seen to be targeted when it comes to unfair and unlawful employment conditions and with the Fair Work Ombudsman picking up on so many cases recently, those that are doing wrong by their employees, either intentionally or unintentionally, must put a stop to it, or they are going to get caught out.


In recent times we have seen the cases against 7-Eleven and Grill’d be widely publicised for their underpaying and mistreatment of staff.  


In the 7-Eleven case, it was found that some workers were getting paid as little as $10 per hour, having their passports or licences withheld and also being subjected to blackmail in regards to their visas. This is not the first time that 7-Eleven have been under scrutiny by Fair Work. In fact in the last 6 years the wages have been under scrutiny no less than 3 times by the wage regulator.


The Grill’d case was somewhat different, whereby one employee stood up against the Workplace Contract that she was working under, which had been certified and approved back in 2005, demanding that in order to meet minimum wage conditions, it needed to be changed. Lack of penalty rates when working in the hospitality industry can make a big difference to the end pay packet! She has since been reinstated and reform of wages in the fast food chain has begun.


But then there’s all the other cases that you don’t hear much about. The small owner operator hospitality operations that think they can underpay travellers, young people, migrants, or any other minority group. Those business operators that believe their staff “are lucky to have a job at all”. And those that think they will just get away with it.


From a café in Sydney underpaying three Korean workers to the tune of $40,000, a café in Hobart that have underpaid four employees a total amount of $20,000 and a deli in Western Australia that is now owing $20,000 to eight of its employees…the stories are coming out daily and it’s really not good enough. Whilst some employers plead ignorance or lack of understanding of the employment laws in Australia, others have already been put on notice by the Fair Work Commission and continue to underpay, undervalue and fail to understand the ramifications of their actions.


The Fair Work Act 2009 was implemented on July 1, 2009. This governs the minimum employment laws covering wages, leave entitlements, minimum standards as well as unfair dismissal protection. Any employee that feels they are not receiving the correct wages or working under the minimum standards, are able to contact the Fair Work Ombudsman to report their case, or simply to find out if in fact they are being treated unfairly.


Not surprisingly, The Fair Work Ombudsman is most active in the hospitality industry. An industry that whilst offering many a great opportunity to fulfil an amazing career, also relies heavily on transient staff to fill the fluctuating requirements and demands of the business.


At Pinnacle People, we hire many international students, travellers and visa holders all around Australia. All of our staff can be assured that they are paid correctly in accordance with the award.


http://www.smh.com.au/business/workplace-relations/7eleven-investigation-exposes-shocking-exploitation-of-convenience-store-workers-20150828-gja276.html


http://www.abc.net.au/news/2015-07-20/melbourne-woman-allegedly-sacked-after-complainging-about-pay/6632690


http://www.hospitalitymagazine.com.au/food/news/hobart-cafe-workers-awarded-$20-000-in-back-pay?mid=034f080186&utm_source=Primary+Newsletter+List&utm_campaign=cbe8842e33-Hospitality+Newsletter+-+20150922132002&utm_medium=email&utm_term=0_532d1e7147-cbe8842e33-108805009


http://www.hospitalitymagazine.com.au/food/news/sydney-cbd-cafe-ordered-to-back-pay-three-korean-e?mid=034f080186&utm_source=Primary+Newsletter+List&utm_campaign=e912333bc5-Hospitality+Newsletter+-+20151001113745&utm_medium=email&utm_term=0_532d1e7147-e912333bc5-108805009