March 2019 | Subway franchisee fined $65,000 for paying worker $14 an hour

Date: 5 March 2019

Source: Smart Company 

A former Subway franchisee who operated two outlets in Sydney has been fined $65,000 for paying a worker on a flat rate as low as $14 an hour.

The Federal Circuit Court found the franchisee underpaid a Chinese visa worker $16,345 between 2014 and 2016.

Interestingly, a special clothing allowance was also underpaid, the Court found.

Under the Fast Food Industry Award, the worker was entitled to a minimum hourly rate of over $18, plus casual loading and penalty rates of up to $52.22 on public holidays.

However, the worker was paid just $14 to $14.50 an hour as a flat rate.

The Court heard Fair Work inspector Kristen Walsh rejected a request from the business owner to consider part of the worker’s employment period as part-time rather than casual.