Gloria Jean’s franchisee in hot water

 

Gloria Jean'sThe operator of a Gloria Jean’s coffee shop in Sydney has paid $2000 compensation to a young casual employee who was dismissed after she queried her pay rate.

The payment is part of an Enforceable Undertaking the employer has entered into with the Fair Work Ombudsman as an alternative to litigation.

Senan Pty Ltd, which previously operated a Gloria Jean’s franchise at the Kings Cross Shopping Centre on Darlinghurst Road, has also issued a written apology to the former employee following an investigation by the Fair Work Ombudsman.

In early June last year, the casual employee asked Senan director, Elaine (Lie Ming) Zhou, if the flat rate of $12 an hour she was being paid for all hours worked was the correct rate of pay.

Two days later, Zhou cancelled the employee’s next rostered shift and later sent her an email terminating her employment.

The employee, a 26 year old foreign worker in Australia on a skilled graduate visa, complained to the Fair Work Ombudsman, which later commenced an investigation, including wages and conditions of other staff.

The Fair Work Ombudsman found that Senan contravened the Fair Work Act when it cancelled her rostered shift and dismissed her for querying her employment conditions.

It also found that 15 other staff had been underpaid a total of more than $16,000 between June, 2011 and July, 2013 – including one employee who was owed $8200 back-pay.

The staff – including six young workers aged between 17 and 20, three foreign workers in Australia on Visas – had been underpaid their minimum rate of pay, casual loadings, weekend penalty rates, and payment of accrued entitlements on termination.

The Fair Work Ombudsman also found Senan had breached workplace laws by failing to keep proper employment records.

As part of the Enforceable Undertaking, Senan has written to all affected employees offering its “sincere regret” and committing to a number of measures to ensure its future compliance with Commonwealth workplace laws.

It also agreed to pay $2000 to the employee whose job was terminated for economic and non-economic losses suffered as a consequence of the adverse action.

Zhou was also required to undertake workplace relations training on the rights and responsibilities of employers under the Fair Work Act, particularly in relation to discrimination in the workforce.

Fair Work Ombudsman Natalie James says the Senan case should serve as a reminder to all employers, big and small, that employees have a lawful right to question their workplace entitlements.

She says the maximum court penalty for taking adverse action against an employee who asks about their pay rates or other working conditions is $10,200 for an individual and $51,000 for a company.

“We will take a dim view of employers who show the door to staff simply because they asked about their pay rates,” James said.

“But we don’t insist there is only one way to achieve compliance with workplace laws – education, positive motivators and deterrents are all important.”

James says Senan and Ms Zhou willingly co-operated with Fair Work inspectors to rectify her contraventions and put measures in place to ensure the mistakes are not repeated in future.

 

 

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