Carlo Benjamin Dela Cruz and Leiden Emmanuel Panol, former operators of Chatime Cinema City outlet in Sydney CBD are facing legal actions for their alleged involvement in the underpayments of its workers.
Fair Work Ombudsman Sandra Parker said that inspectors discovered the alleged underpayments during proactive audits.
“Enforcing workplace laws in the fast food sector continues to be a priority for the Fair Work Ombudsman, and we are investigating compliance levels in both established and emerging franchise chains across Australia,” Ms Parker said.
Franchise outlets have been advised that they must give lawful minimum pay rates to their staff and franchisors must ensure that their franchisees comply with the law.
According to FWO, employees at Chatime Cineman City were allegedly generally paid flat rates as low as $13 to $18.55 per hour, between January and November 2017, which resulted in underpayment of wages and conditions they were entitled to under Fast Food Industry Award 2010.
On public holidays, employees’ penalty rates allegedly did not meet those required under the relevant Award.
A total of $46,372 was allegedly underpaid and has not been rectified. FWO further discovered that Panol DC Pty Ltd and Mr Panol allegedly did not comply with record-keeping laws.
Ms Parker also stressed that a number of junior workers aged under 21 and several visa holders, mostly international students, were allegedly underpaid by Panel DC and its directors.
“All workers in Australia have the same rights, regardless of citizenship or visa status, and we encourage anyone with concerns about their pay to contact the Fair Work Ombudsman.”
“We have an agreement with the Department of Home Affairs that allows visa holders to seek our help without fear of their visa being cancelled,” Ms Parker said.
Mr Panol and Mr Dela Cruz face penalties of up to $12,600 per contravention and the maximum penalty for Panol DC Pty Ltd is up to $63,000 per contravention.
The Fair Work ombudsman is also seeking Court orders requiring Panol DC Pty Ltd, Mr Panol and Mr Dela Cruz to back-pay the employees in full.
