Ex-East Vic Park restaurant operators cop massive fines for wage underpayments of staff over two-years

A former operator of The Globe Pan and Grill has been ordered to pay more than $52,000 in penalties, compensation and other entitlements for underpaying staff for two years. The Federal Circuit and Family Court imposed penalties of $33,522 against GCH Vic Park Pty Ltd, which formerly operated the Albany Highway eatery, and its director Jay Patel. The Globe Pan and Grill is now permanently closed. The company was fined $27,935, while Mr Patel was personally penalised $5,587 for his involvement in the breach. GCH Vic Park Pty Ltd was also ordered to pay $18,720 in compensation to 18 former employees, as well as interest and superannuation. The Fair Work Ombudsman took legal action in July 2023, after the company failed to calculate and back-pay some of its cooks and food and beverage attendants. The Fair Work inspector believed the workers had been underpaid between December 2021 and July 2023 while employed on casual, part-time and full-time contracts. The alleged underpayments included minimum wage rates, weekend penalty rates and accrued but untaken annual leave entitlements owed under the Restaurant Industry Award 2020 and the National Employment Standards. Fair Work Ombudsman Anna Booth said businesses that ignored compliance notices risked significant legal consequences. “When compliance notices are not followed, we will continue to take legal action,” she said. “Employers should be aware that taking action to improve compliance in the fast food, restaurant and cafes sector is a priority for the Fair Work Ombudsman.” The regulator investigated the company as part of wider auditing campaign which targeted businesses across the hospitality sector.