Fair Work Ombudsman Recovers Over $129,000 for Underpaid Workers in Hobart Hospitality Crackdown

The Fair Work Ombudsman (FWO) has recovered $129,674 in unpaid wages for 180 workers following a series of surprise inspections targeting fast food outlets, restaurants and cafés across Hobart.

The inspections, carried out across 28 food businesses in Hobart CBD, North Hobart, Bellerive, Howrah, Rosny, Rosny Park and Lindisfarne, found widespread breaches of Australia’s workplace laws. Investigators determined that 22 businesses failed to comply with the Fair Work Act, while only six businesses were fully compliant.

The most common breaches included the underpayment of minimum base pay rates at 20 businesses and penalty rates at 18 businesses. Inspectors also identified failures to provide compliant pay slips at five businesses and inadequate employment records at seven businesses.

The largest single recovery totalled $19,277 for 27 employees at one restaurant, where workers had been underpaid minimum wages, overtime and penalty rates required under the Restaurant Industry Award 2020.

As part of the enforcement action, the Fair Work Ombudsman issued 12 infringement notices to eight businesses, resulting in $24,570 in fines for record-keeping and pay slip breaches. The regulator also issued 31 Compliance Notices to 22 businesses, requiring employers to rectify underpayments and resulting in the recovery of $129,674 for affected employees.

Compliance Improvement Highlight

One North Hobart business demonstrated significant improvement following earlier enforcement action. After previously repaying $150,905 to 55 employees following inspections in 2019, a follow-up inspection found the business was largely compliant. The only remaining issue involved an age-related pay increase affecting four employees, who were promptly repaid $2,199.

The business owner acknowledged the regulator’s guidance had transformed workplace practices.

“When the FWO first visited in 2019, I was new in the industry and had no clue about the Award or that I was doing anything wrong. They helped me understand my obligations, and now I have proper systems in place to ensure compliance.”

Fair Work Ombudsman Warns Employers

Fair Work Ombudsman Anna Booth said the findings reinforce why compliance in the hospitality industry remains one of the regulator’s national priorities.

She said many workers in the sector—particularly young employees and visa holders—continue to miss out on their lawful wages and entitlements.

Ms Booth urged employers to ensure they correctly pay minimum wages, overtime and penalty rates while maintaining accurate employment records and compliant pay slips.

She also encouraged businesses to make use of the Fair Work Ombudsman’s free resources, including online pay calculators, pay guides, templates and the Employer Advisory Service, which provides tailored advice to small businesses.

Workers who believe they may have been underpaid were encouraged to contact the Fair Work Ombudsman, with anonymous reporting available.

Industry Welcomes Compliance Efforts

Steve Old, Chief Executive Officer of Hospitality Tasmania, welcomed the inspections and said hospitality businesses benefit from practical guidance provided by Fair Work Inspectors.

He said the industry remains committed to working collaboratively with the Fair Work Ombudsman to improve understanding of workplace laws and ensure employees receive all wages and entitlements they are legally owed.

The Fair Work Ombudsman said surprise inspections and targeted compliance campaigns will continue across Australia as part of ongoing efforts to protect workers and promote fair workplace practices throughout the hospitality sector.

Source: Fair Work Ombudsman /Media