WA Hospitality Workers Underpaid

Nearly 400 West Australian hospitality workers have been underpaid by restaurants and cafes that do not comply with employment law.

Department of Mines, Industry Regulation and Safety inspectors discovered 49 WA cafes and restaurants were underpaying staff during a 12-month investigation. Underpayments were identified for 369 employees’, valued close to $350,000.

The Department of Mines, Industry Regulation and Safety executive director Lorraine Field reflects, not all businesses underpay their staff intentionally however, it appears there is a systematic problem in some cafes and restaurants underpaying their employees. An alarming number of businesses continue to underpay employees after being exposed by the investigation. Although many cafes and restaurants are doing it tough after COVID-19, complying with employment law is not optional, and inspections will continue to target high-risk industries, she declared.

One of the restaurants underpaid 50 staff members $73,100, workers were not paid their correct award rate or penalty loadings. Unexplained pay deductions and unwarranted adjustments to annual leave also contributed to the underpayment. The restaurant has agreed to pay back employees but will be subject to future inspection for compliance.

Investigators visited cafes and restaurants unannounced, inspected employment records and spoke to employees during the 12-month investigation. Since the investigation, over half the total repayment has been returned to employees.

Half of all WA hospitality employees are between 15 and 24 years old, and a third of employees are migrant or visa workers, meaning they are likely unaware of their rights.

For assistance determining the correct pay rate for your employees contact ProcessWorx on (08) 9316 9896 or enquiries@processworx.com.au

Follow ProcessWorx on LinkedInFacebookInstagram, and Twitter to keep up to date with the latest HR and Safety news.

Written by Danielle McNamee



More Posts

Christmas Shutdown, Annual Leave

Preparing for Christmas Shutdown

Coming into December many organisations observe a shutdown over the Christmas New Year period. However, determining employees pay during this time can be complicated. Payment

Office Christmas Party, go to guide

Go To Office Christmas Party Guide

The in the upcoming weeks Australian workplaces will celebrate the year and indulge in festivities with colleagues. The office Christmas party can be the event

Send Us A Message

Contact Us

Start your HR or Safety assessment for your business

Treat yourself

Let Us Take Care Of You

Copyright © ProcessWorx 2021