“More than colleagues, we are family.” – Statements from MadE Establishment before they were found to have underpaid 515 of their workers a total of over $7.8 million.

FACTS:

  • MadE Establishment, of which celebrity chef George Calombaris is a founding member and current shareholder, has admitted to underpaying staff more than $7.8 million in wages and superannuation between 2011 and 2017.
  • The underpayments are mostly from the companies inability to properly pay staff, particularly casual employees, at their correct classification under the Restaurant Industry Award 2010.

It is important to note that although this may only be a $1 at most per hour (depending on the grade classification); that it DOES ADD UP!

Fair Work Ombudsman inspectors found the underpayments occurred because:

  1. of a failure to correctly apply annualised salary arrangements, and
  2. by failing to check workers on annual salary arrangements were paid for overtime and penalty rate hours worked.

What does this mean for me in my business?

  • Check your Award. Does your Award calculate overtime on a weekly basis or a daily basis?
  • Make sure that you keep accurate timesheets. Timesheets must include a start and finish time, and start and finish time for breaks.
  • For any flat rates, make sure that you have a clear agreement in writing.
  • Never assume, always check your Award.
  • Make sure that you are aware of the break entitlements. If you are unsure check your Award or give us a call.
    Most importantly: Document, Document, Document!
    • Here is a timesheet template for you to use within your business.
      Download now

      Penalties for MadE:

      1. Required to enter into a court-enforceable undertaking (“EU”) with the Fair Work Ombudsman.
      2. Now = Has a “babysitter” (i.e. Self-funded external auditors) to ensure their workers’ pay and conditions are meeting the required obligations by law.
      3. Basically these measures will ensure that ALL current and future employees will be paid correctly.
      4. + Fined $200,000 + negative media coverage.

      Need help? Talk to us. I am always available for a chat about your rates and record keeping requirements. Contact me on 0438 735 926 or (07) 40517 307 or email phoebe@hrdynamics.com.au.

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