Pizza chain caught in pay sting
Posted Date: 26/01/2012
By Inside Retail
A crooked Eagle Boys pizza franchisee has brought the brand into disrepute by landing in court over underpaying workers.
The Fair Work Ombudsman will prosecute the operators of an Eagle Boys pizza outlet in Cessnock, regional NSW, for allegedly paying its employees just $9 an hour.
Court documents allege franchisee Stacborn Pty Ltd, underpaid 17 delivery drivers and two shop assistants a total of $48,905 between October 2008 and June 2010. Five of the staff were under 18 at the time.
The delivery drivers were allegedly paid a flat rate of just $9 an hour, but the Fair Work Ombudsman says the juniors should have been paid at least $12 and the adult workers between $14 and $18.
A male employee in his 20s was allegedly underpaid $11,478.
Fair Work inspectors discovered the alleged underpayments when they investigated a complaint lodged by one of the employees. Only a small portion of the total outstanding amount has been back-paid.
Fair Work Ombudsman Nicholas Wilson says a decision was made to take legal action because the workers were largely young and vulnerable and because of the significant amount involved.
The Fair Work Ombudsman alleges Stacborn Pty Ltd committed several breaches of workplace laws.
The maximum potential penalty per breach is $33,000.
The Fair Work Ombudsman is also seeking a Court Order for back-payment of the money allegedly still owed to the workers.
The case is listed for a directions hearing on February 14 in the Federal Magistrates Court in Sydney.
Employers or employees seeking assistance should contact the Fair Work Infoline on 13 13 94 or visit www.fairwork.gov.au.
Keywords:
Eagle Boys,
Fair Work
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