Frozen yoghurt chain Yogurberry faces legal pressure to submit to a national audit after it was found to be allegedly underpaying overseas workers thousands of dollars.
Hot on the heels of Fairfax Media revelations about rampant underpayment of 7-Eleven workers, the national fair work watchdog is now taking aim at the national yoghurt retail chain.
Young backpackers were allegedly paid as little as $8 an hour at the Yogurberry frozen yoghurt outlet in the World Square shopping centre in Sydney's CBD.
The head of the Australian company and master franchisor of the Yogurberry chain faces legal action and tens of thousands of dollars in fines for allegedly short-changing four Korean nationals who speak little English.
The national fair work watchdog alleges the backpackers on 417 working holiday visas were allegedly underpaid almost $18,000 after being paid just $8 an hour initially and flat rates as low as $11 an hour. Each worker was underpaid around $2000 to more than $6000.
It is alleged YBF Australia formerly controlled the retail outlet through its associated company Yogurberry World Square Pty Ltd.
YBF Australia Pty Ltd, Yogurberry World Square Pty Ltd and CL Group Pty Ltd each face fines of between $25,500 and $51,000 for each breach of workplace laws. YBF Australia part-owner Soon Ok Oh is also facing legal action and fines.
The Fair Work Ombudsman said the employees should have been paid between $14.82 and $18.52 an hour under the Fast Food Industry Award. It said the workers did not receive a clothing allowance or superannuation entitlements and that unlawful deductions were made from their wages.
Workplace laws regulating record-keeping, pay slips and other requirements were also allegedly breached.
The employees have been back-paid all entitlements, except for superannuation.
Fair Work Ombudsman Natalie James said legal action was necessary because YBF Australia had previously been put on notice of the need to pay employees their lawful minimum entitlements.
YBF Australia has been previously issued with cautions and on-the-spot fines.
A directions hearing will be held at the Federal Court in Sydney on July 26.
Fair Work Ombudsman Natalie James said her office is committed to improving compliance in the hospitality industry.
She said a three-year National Hospitality Industry Campaign resulted in more than $582,000 being recovered for underpaid employees at take-away food outlets across Australia this year.
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Hot on the heels of Fairfax Media revelations about rampant underpayment of 7-Eleven workers, the national fair work watchdog is now taking aim at the national yoghurt retail chain.
Young backpackers were allegedly paid as little as $8 an hour at the Yogurberry frozen yoghurt outlet in the World Square shopping centre in Sydney's CBD.
The head of the Australian company and master franchisor of the Yogurberry chain faces legal action and tens of thousands of dollars in fines for allegedly short-changing four Korean nationals who speak little English.
The national fair work watchdog alleges the backpackers on 417 working holiday visas were allegedly underpaid almost $18,000 after being paid just $8 an hour initially and flat rates as low as $11 an hour. Each worker was underpaid around $2000 to more than $6000.
It is alleged YBF Australia formerly controlled the retail outlet through its associated company Yogurberry World Square Pty Ltd.
YBF Australia Pty Ltd, Yogurberry World Square Pty Ltd and CL Group Pty Ltd each face fines of between $25,500 and $51,000 for each breach of workplace laws. YBF Australia part-owner Soon Ok Oh is also facing legal action and fines.
The Fair Work Ombudsman said the employees should have been paid between $14.82 and $18.52 an hour under the Fast Food Industry Award. It said the workers did not receive a clothing allowance or superannuation entitlements and that unlawful deductions were made from their wages.
Workplace laws regulating record-keeping, pay slips and other requirements were also allegedly breached.
The employees have been back-paid all entitlements, except for superannuation.
Fair Work Ombudsman Natalie James said legal action was necessary because YBF Australia had previously been put on notice of the need to pay employees their lawful minimum entitlements.
YBF Australia has been previously issued with cautions and on-the-spot fines.
A directions hearing will be held at the Federal Court in Sydney on July 26.
Fair Work Ombudsman Natalie James said her office is committed to improving compliance in the hospitality industry.
She said a three-year National Hospitality Industry Campaign resulted in more than $582,000 being recovered for underpaid employees at take-away food outlets across Australia this year.
SMH Read more:
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