#workersnonpayment

A Melbourne restaurant has been ordered to pay over $334,817 in fines after he was found to have violated wage rules. La Porchetta outlets located in Pakenham and Berwick allegedly doled out pizzas and soft drinks to its employees as a ploy to underpay them.

The owner defended the non-payment of wages claiming that pizzas and soft drinks were given to the employees at half prices to offset their entitlements.

Run by Ruby Chand, who also owns real estate investment trust Bound For Glory Enterprises and food and drink consultancy Zillon Zenith International, was accused of underpaying 111 restaurant staff more than $258,000 in three years.

Fair Work inspectors found that the outlet employed young workers as young as 13 years and mostly in their teens as “cooks, kitchen attendants and food and beverage service staff.” A significant number of these young employees were underpaid and their huge size became a factor in the legal action.

A flat hourly rate, which was far less than minimum wage, was paid to the employees while there was no compensation for leave entitlements. Apprentices and trainees found to be underpaid for number of hours they worked for.

“The practice "belongs in the dark ages and warrants severe sanction by way of penalty," Judge John O'Sullivan commented while pronouncing the verdict, which included $334,817 as fine and recovery of $79,000 in outstanding entitlements.

The owner of companies faced a similar court action in 2007, 2008 and 2009.