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Category: Industrial Relations

NT takeaway food workers short-changed, investigation reveals

Thursday, 31 Mar 2016 06:14:57 | Nadia Daly

More than half of all takeaway food business in the NT are underpaying staff, an investigation by the Fair Work Ombudsman has revealed.

Findings from the audit of 23 businesses in the Northern Territory conducted from 2014-15 showed 48 per cent of takeaway food employers paid staff correctly, and just 26 per cent were compliant with all requirements.

Key points:

  • Fair Work finds 52% of NT takeaway workers underpaid
  • A total of 41 employees underpaid by $32,076
  • SDA union calling for tougher penalties for employers

Seventy-four per cent had errors relating to pay rates and pay slips, such as paying workers less than the hourly rate.

"Clearly, the take-away food sector, an industry comprised largely of small businesses, is grappling with the complexity of the IR system and few it seems are joining industry bodies to seek professional help and advice," Acting Fair Work Ombudsman Michael Campbell said.

Josh Peak from the union representing takeaway workers, the Shop Distributive and Allied Employees' Association, said many workers in the fast food industry were unaware of their rights and entitlements.

"We've seen workers who are young, on visas, deliberately targeted by not getting paid correctly," Mr Peak said.

While the Ombudsman's report said the report "demonstrates that the industry requires continued support to obtain ongoing compliance", Mr Peak said a tougher stance was needed.

"If employers are deliberately underpaying staff there should be stiff penalties. And we do see time and time again employers not paying staff correctly and basically getting away with it," he said.

Indeed, the Ombudsman's report noted that a "defining characteristic" of the industry was predominately having low-skilled workers is its age profile.

About 46 per cent of workers were aged between 15 and 19.

The Fair Work Ombudsman recovered $32,076 in unpaid wages for 41 Territory workers who were short-changed from eight different businesses.

The Ombudsman said industry leaders needed to help spread the message to encourage compliance with wages, payslips and record-keeping and lift the standard.

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