Ombudsman 'surprise audits' chicken chain

Assorted fried chickens

Source: Photodisc

A Korean fried chicken and beer franchise was hit by surprise Fair Work Ombudsman audits after staff claimed they were underpaid and not awarded penalty rates.


Korean fried chicken and beer outlets in Melbourne, Sydney and Perth are being hit by a series of 'surprise audits' after workers complained the franchise was ripping them off.

The Fair Work Ombudsman announced it was inspecting 19 Gami Chicken and Beer stores on Thursday after receiving more than 20 anonymous complaints from employees claiming underpayments, including failure to pay penalty rates, and failure to provide pay slips.

Ombudsman Sandra Parker said the workers were "potentially vulnerable due to their age, cultural background or visa status" but that Australia's minimum pay rates were not negotiable.

The fast food chain opened its first store in Melbourne's south eastern suburbs in 2006 and began franchising in 2015. It now has 15 stores in Victoria, two in NSW, two in Western Australia, one in Canberra and has promoted new stores for Brisbane and Adelaide.

Ms Parker said the audits were part of the Ombudsman's crack down on the fast food, restaurants and cafe sectors.

The Ombudsman said the hospitality industry was "again overrepresented" in worker complaints last financial year. Despite representing seven per cent of the workforce, almost 40 per cent of all anonymous reports, 18 per cent of workplace disputes recorded and a third of court actions came from that industry.

More than $4 million was recovered by the FWO for workers from fast food, restaurant and cafe businesses last financial year.

Gami has been contacted for comment.

[The full story is available on the podcast above]


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