“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.
- 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:
- of a failure to correctly apply annualised salary arrangements, and
- 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?
Most importantly: Document, Document, Document!
Here is a timesheet template for you to use within your business.
Penalties for MadE:
- Required to enter into a court-enforceable undertaking (“EU”) with the Fair Work Ombudsman.
- Now = Has a “babysitter” (i.e. Self-funded external auditors) to ensure their workers’ pay and conditions are meeting the required obligations by law.
- Basically these measures will ensure that ALL current and future employees will be paid correctly.
- + Fined $200,000 + negative media coverage.