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Workers At This Chatime Store In Sydney Were Allegedly Underpaid By More Than $46,000

The Fair Work Ombudsman is taking the former franchisee to court.

chatime

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A heads up for fans of bubble tea: the Fair Work Ombudsman is taking the former operators of a Sydney Chatime franchise to court over allegations that it underpaid workers by more than $46,000.

The company, Panol DC Pty Ltd, used to operate the Chatime Cinema City store on George Street in Sydney’s CBD. From January to November 2017, workers at that store were allegedly paid rates as low as $13 an hour, without casual loadings or public holiday penalty rates.

In total, it’s alleged that 17 employees were underpaid by a total of $46,372, and that they still haven’t received the money they’re owed. These workers included several junior employees under the age of 21, as well as international students. The Fair Work Ombudsman is seeking a court order requiring Panol DC to back-pay these workers.

Fair Work Ombudsman Sandra Parker said that Fair Work inspectors discovered the alleged underpayment during an audit of the business, and warned that “all franchise outlets are on notice that they must pay staff lawful minimum pay rates”.

She added that anyone with concerns about their pay should contact the Fair Work Ombudsman, and made clear that international students do not need to worry about their visas if they do so.

“All workers in Australia have the same rights, regardless of citizenship or visa status, and we encourage anyone with concerns about their pay to contact the Fair Work Ombudsman,” she said. “We have an agreement with the Department of Home Affairs that allows visa holders to seek our help without fear of their visa being cancelled”.

If Fair Work’s legal action is successful, Panol DC Pty Ltd faces penalties of up to $63,000 per contravention, while its owners Carlo Benjamin Dela Cruz and Leiden Emmanual Panol face penalties of up to $12,600 per contravention.

There will be a directions hearing in the Federal Circuit Court in Sydney in May. We’ll keep you posted.


If you know more about this story, or you’re concerned about potential underpayment in your workplace, you can contact this reporter at [email protected] and we’ll look into it. 

If you’re concerned that you or someone you know is being underpaid, you should also get in touch with the Fair Work Ombudsman at www.fairwork.gov.au, or call the Fair Work Infoline on 13 13 94 for free advice and assistance.