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Former Townsville café penalised for underpaying staff

November 11, 2022 10:04 am in by

A former Townsville café has been ordered to pay nearly $30,000 in penalties after failing to back-pay employees.

The Federal Circuit and Family Court has imposed a $26,000 penalty against Smart Vision Developments Pty Ltd, which operated Grand Central Cafe in Townsville’s Central Village precinct, and a $3,200 penalty against former company director John Atkinson.

The penalties were in response to the operators failing to back-pay entitlements to two workers they employed from June to September 2020.

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One of the workers was a junior, aged 19 when employed at the café.

The Court has also ordered the company to comply with the Compliance Notices, which includes back-paying the workers in full, plus superannuation and interest.

Fair Work Ombudsman Sandra Parker says business operators that fail to act on Compliance Notices need to be aware they can face court-imposed penalties on top of having to back-pay workers.

“When Compliance Notices are not followed, we are prepared to take legal action to ensure workers receive their lawful entitlements,” Ms Parker says.

“Employers also need to be aware that taking action to protect young workers and to improve compliance in the fast food, restaurant and café sector continue to be priorities for the FWO.”

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The FWO investigated after receiving requests for assistance from the two affected workers.

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