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Sydney PappaRich franchisees hit with $308k penalty

The Fair Work Ombudsman has secured close to $308,000 in penalties against an operator and two companies that had underpaid 154 workers and breached record-keeping laws.

Bookkeeper Reporter 21 November 2019
— 1 minute read

The Fair Work Ombudsman has secured $307,802 in penalties in the Federal Circuit Court in response to 154 workers across three PappaRich restaurants in Sydney being underpaid $74,000.

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A total of $34,425 in penalties have been imposed against Loke Cheng Wong, manager-operator of the PappaRich franchise outlet at Macquarie Park, and former manager-operator of the franchise outlets in Chatswood and on Liverpool Street in the Sydney CBD.

In addition, two companies Mr Wong is a director and part-owner of — PPR Ryde (NSW) Pty Ltd and Gateharvest Pty Ltd — have been penalised $141,751 and $131,626, respectively, for their involvement in some of the underpayments.

The 154 PappaRich employees were found to be paid flat rates as low as $13 to $14.50 per hour between May and July 2017.

Across the three stores, laws relating to annual and personal leave entitlements, entering into written agreements with part-time employees, minimum engagement pay, a split shift allowance, record keeping and payslips were also breached by Mr Wong and the companies.

Judge Driver dismissed Mr Wong’s claim that he was not aware of the relevant award.

“Mr Wong pleads ignorance of the relevant award requirements, but the evidence establishes that he was aware of the existence of an award and did not make further inquiries until the details of the award, and the consequential underpayments, were brought to his attention,” Judge Driver said.

Fair Work Ombudsman Sandra Parker said inspectors discovered the PappaRich underpayments during surprise audits.

“This penalty should serve as a warning to employers who choose to pay migrant workers unlawfully low flat rates rather than the applicable minimum award. All employees have the same rights under Australia’s workplace laws, regardless of visa status, and any migrant workers with concerns about their pay should contact us,” Ms Parker said.

“Enforcing compliance with workplace laws in the fast food, restaurant and café sector and protecting vulnerable workers are priorities for the Fair Work Ombudsman. Franchisees are also on notice that they must pay all employees according to Australia’s lawful minimum pay rates.”

Sydney PappaRich franchisees hit with $308k penalty
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