The Fair Work Ombudsman is making surprise inspections of fast food outlets, restaurants and cafes in inner Hobart and its north-eastern suburbs this week to check workers are getting the right pay and entitlements.
Thirty-four food outlets representing 29 businesses have been targeted for inspection in the Hobart CBD, North Hobart, Howrah, Bellerive, Rosny, Rosny Park and Lindisfarne.
Fair Work Inspectors are speaking with business owners, managers and employees on the ground, and requesting records.
Businesses were selected based on the FWO's intelligence including prior history of alleged non-compliance, employee tip-offs, or employment of vulnerable workers such as visa holders or young people. Most of the eateries are 'cheap eats' venues.
Fair Work Ombudsman Anna Booth said protecting vulnerable workers and improving compliance in the fast food, restaurants and cafés sector were priorities for the regulator.
"Inspectors are on the ground in Hobart and its north-eastern suburbs this week speaking with employees and holding employers to account if they are not following workplace laws," Ms Booth said.
"We won't hesitate to take enforcement action if needed.
"These inspections are part of a national Food Precincts Program where we've often found that low-cost dining comes at the expense of workers' lawful wages.
"This sector engages many young workers and visa holders who can be vulnerable, as they are often unaware of their workplace rights or unwilling to speak up.
"We urge workers with concerns about wages and entitlements to reach out to us - including anonymously if preferred. Employers should access our free tools and resources to ensure they're meeting their obligations, or contact the FWO directly for free advice."
Inspectors are on alert for unlawfully low flat rates of pay; "off the books" employment arrangements; inadequate or missed breaks; non-payment of penalty rates and overtime rates; inadequate or false record-keeping and pay slips; and cashback schemes, in which employees are made to unlawfully pay back some of their wages, among other concerns.
In 2021, the Fair Work Ombudsman recovered over $580,000 for 376 underpaid Hobart food outlet workers after auditing 45 businesses at North Hobart, Salamanca/Battery Point and Constitution Dock.
The FWO's surprise inspections have also taken place in Launceston, Melbourne, Canberra's north and Queanbeyan in NSW, Brisbane, Sydney, Adelaide, the Sunshine Coast and Gold Coast in Queensland, Newcastle, Darwin and Perth.
In 2023-24, the regulator recovered $5.6 million for more than 3000 underpaid fast food outlet, restaurant and café workers nationally.
The FWO has secured some of its highest court-ordered penalties in litigations involving businesses in this sector, such as the record $15.3 million against the former operators of Sushi Bay outlets, in August 2024, for deliberately exploiting vulnerable migrant workers, including underpaying staff more than $650,000.
In April 2024, the FWO secured $4 million in penalties against the former operators and managers of three Din Tai Fung restaurants for deliberately and systematically underpaying vulnerable migrant workers and providing false records.
The FWO has interactive tools to help employers and employees in the fast food, restaurants and cafés sector, and for any franchisees.
Employers can use the FWO's pay calculator and Small Business Showcase. Small businesses can also self-assess their compliance with this checklist.
We also have resources for visa holders - who have the same workplace rights as all other employees - and young workers. Know a workplace not doing the right thing but don't want to get involved? Report it anonymously - in your language.
