The Fair Work Ombudsman has secured a $21,645 penalty in court against the former operator of a burger outlet in Darwin for a breach affecting a vulnerable young worker.
The Federal Circuit and Family Court has imposed the penalty against Territory Tough Pty Ltd, which formerly operated a burger outlet trading as 'Good Thanks' in Darwin's CBD.
The penalty was imposed in response to Territory Tough failing to comply with a Compliance Notice requiring it to calculate and back-pay entitlements owing to a young worker it employed at the outlet as a full-time chef between May 2019 and June 2022.
The worker, aged between 17 and 20 at the time, was engaged in a commercial cookery apprenticeship.
A Fair Work Inspector issued the Compliance Notice to Territory Tough in October 2022 in response to the company failing to pay the worker wages for time spent attending registered training as part of his apprenticeship, as required under the Restaurant Industry Award 2010 and 2020.
Following Territory Tough's failure to comply with a court order made earlier this year to back-pay the worker, the Court has ordered that $6,118 of the penalty imposed on the company be provided to the worker, the amount FWO calculated as outstanding under the notice at the time of the hearing.
Fair Work Ombudsman Anna Booth said business operators that fail to act on Compliance Notices need to be aware they can face penalty and back-pay orders in court.
"When Compliance Notices are not followed, we will continue to take legal action to protect employees. Employers who fail to act on these notices risk substantial penalties and back-pay orders," Ms Booth said.
"This case is also a reminder that apprentices must be paid for time spent attending registered training. Employers and apprentices should check out our apprentice entitlements webpage.
"Employers should also be aware that taking action to protect young workers and to improve compliance in the fast food, restaurants and cafes sector are priorities for the FWO. Any employees with concerns about their pay or entitlements should contact us for free advice and assistance."
The FWO investigated after receiving a request for assistance from the affected worker.
Judge Liveris found that Territory Tough had displayed a disregard for its obligations under the Fair Work Act and shown no contrition for a breach affecting a vulnerable young worker.
"The exploitation of vulnerable employees undermines the objects of the workplace relations system," Judge Liveris said.
Judge Liveris found that there was a need to impose a penalty to deter Territory Tough and other employers from similar breaches in future, saying he took into account that "the fast food, restaurant and café industry has recorded high rates of non-compliance with workplace laws".
"The pecuniary penalty is required to act as a deterrent mechanism in preventing similar contraventions by people and organisations in the industry," Judge Liveris said.
