LEGAL | Staff Reporter, Australia

Degani Bakery & Cafe outlets underpaid staff, Fair Work Ombudsman reveals

Only 1 out of 16 of their outlets is reportedly compliant with workplace laws.

Fair Work Ombudsman (FWO) released the results of its investigation driven by underpayment complaints against Degani Bakery & Cafe.

The cafe chain is now faced with 10 formal cautions, 8 compliance notices, 5 infringement notices, 1 enforcement undertaking and 1 litigation by the FWO.

The most common issue was the underpayment or non-payment of penalty rates for weekend and public holiday work. Audit reports issued revealed that the implicated outlets owe 86 workers a total of $44,165.

“We undercovered issues with the record-keeping at several Degani outlets that hindered our ability to determine exactly how much back-pay the employees were owed. Unfortunately, Degani’s failure to meet basic workplace requirements is common throughout the hospitality industry,” says FWO’s Sandra Parker.

“Recent law changes mean franchisors can now be held liable for workplace breaches by businesses in their networks. This report reinforces the need for industry-wide cultural change and hospitality leaders should work with the FWO to support compliance,” she added.

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