The Fair Work Ombudsman is conducting unannounced checks at 45 food outlets across Sydney, Brisbane, Canberra and Cairns this week as part of a national focus on record-keeping and payslips in fast food, restaurants and cafés.
Inspectors are visiting “cheap eats” precincts to review time and wage records and payslips, and to make enquiries about whether wages and entitlements are being paid correctly.
The Fair Work Ombudsman, Anna Booth, said record-keeping is the bedrock of compliance with the Fair Work Act. “Accurate records and payslips are a crucial ‘bedrock’ for ensuring employers are paying their employees lawfully for all hours worked. We’re checking food outlets to ensure employers are meeting their legal obligation to prepare accurate records and payslips,” Ms Booth said.
“Missing, incorrect or poorly maintained records and payslips are often an indicator of wage underpayments.
“We are focusing here on the fast food, restaurants and cafés sector because it has a history of high levels of non-compliance and employs large numbers of young people and migrant workers, who we’ve found are more likely to be unaware of their workplace rights or unwilling to speak up if something seems wrong.
“Employers who do not meet their record-keeping and payslip obligations can be fined. Inspectors can also issue Compliance Notices requiring them to backpay wages if we believe that employees have been underpaid.”
Businesses were selected for inspection based on factors including anonymous reports to the regulator and, in some cases, a history of non-compliance. Common problems that attract fines include failing to issue payslips or leaving out required information, not keeping time and wage records such as casual hours, overtime and leave, and making false or misleading records. The Ombudsman also reminded employers that record-keeping obligations apply to salaried staff.
The site visits will be followed by further investigations where required. In 2023–24, the watchdog issued 760 infringement notices for record-keeping and payslip breaches, with almost $987,000 paid in fines. Currently, infringement notices can attract penalties of up to $1,980 per contravention for an individual and $9,900 per contravention for a company.
The fast food, restaurants and cafés sector accounted for 25 per cent of all Compliance Notices issued last financial year, with the regulator recovering $5.6 million for 3,056 underpaid workers in the industry.
During visits, inspectors provide employers with information on record-keeping responsibilities and direct them to resources available on the Fair Work Ombudsman’s website. Employers are reminded to give every new employee the Fair Work Information Statement and, for casuals, the Casual Employee Information Statement. The agency also offers payslip and record-keeping templates, an online course, a small business checklist and a free Employer Advisory Service that provides tailored advice. Employees can track hours via the Record My Hours app.
The regulator has recently alleged record-keeping breaches in several cases involving the sector. In August last year, it secured record penalties of $15.3 million against the former operators of Sushi Bay outlets in NSW, Canberra and Darwin for deliberate underpayments and falsified records. In April, it launched legal action against the operators of the P’Nut Street Noodles chain in Sydney, Brisbane and the Sunshine Coast, alleging almost $1 million in underpayments affecting 118 workers and claiming false or misleading records were provided to inspectors. That case is ongoing.
Workers can seek information from their employer or union, and employers can contact their employer association.
