Busted! Fair Work cracks down on wage theft in Newtown and Enmore

Hospitality businesses in Sydney’s inner west suburbs of Newtown and Enmore are under the microscope this week as the Fair Work Ombudsman (FWO) conducts surprise inspections of restaurants, cafés, and fast food outlets. The crackdown aims to ensure workers are receiving the correct pay and entitlements.

Twenty businesses in these popular food hubs are being inspected, with Fair Work inspectors interviewing managers and employees, checking pay slips and records, and investigating any cases of unpaid work.

Anna Booth, the Fair Work Ombudsman, said the inspections are part of a broader effort to stamp out dodgy workplace practices in the hospitality industry.

“If an employee is required to be at work, the law requires that time is paid,” Booth said.

“That means if a worker is asked to come in early to set up, stay back after closing to clean up, or attend a meeting on their day off, they must be paid.”

Hospitality workers most at risk of wage theft

Newtown and Enmore have been targeted due to previous non-compliance issues, anonymous reports, and the high number of vulnerable workers in the area, including young people and visa holders.

A similar blitz in 2018 found 74 per cent of inspected food businesses in Newtown were non-compliant. The resulting action by Fair Work recovered over $80,000 for 286 employees.

This week’s inspections are part of a national Food Precincts Program, which has uncovered widespread wage theft in low-cost dining venues.

Booth said young and migrant workers are particularly at risk, as they are often unaware of their rights or hesitant to speak up.

“We won’t hesitate to take enforcement action if needed. Employers should check they’re meeting their obligations and reach out to the FWO for free advice.”

Widespread non-compliance in food industry

Previous FWO investigations paint a concerning picture. In 2018, audits found that 74 per cent of Newtown’s food businesses were breaking workplace laws, leading to more than $80,000 in recovered wages for 286 employees. In 2023, similar inspections across Sydney’s hospitality hotspots saw $239,000 recovered for 333 underpaid workers.

Inspectors are keeping an eye out for common violations, including:

• Unlawfully low flat rates of pay
• Underpayment of penalty rates and overtime
• Dodgy ‘off the books’ employment arrangements
• Missed breaks
• Fake or inadequate record-keeping
• Cashback schemes where workers are forced to return part of their wages

Hospitality businesses encouraged to take action now

The FWO is urging hospitality employers to take action to ensure they’re following the law. Business owners can access Fair Work’s online tools, including a pay calculator and compliance checklists, to make sure they’re paying staff correctly.

Workers who believe they’re being underpaid can report concerns anonymously through the Fair Work website.

For more information, visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94.

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