Cupcake business faces court for underpaying employees

Melbourne-based business ‘Little Cupcakes’ is facing court for allegedly underpaying its employees.

Cupcakes

Image is for representation purpose only

Shri Krishna Guru Pty Ltd, which operates three retail stores of the business in the Melbourne CBD, allegedly underpaid 35 of its employees between January 2018 to February 2019, the FairWork Ombudsman (FWO) said.


Highlights:

  • Melbourne-based business ‘Little Cupcakes’ is facing court for allegedly underpaying its employees.
  • FWO alleged that 35 employees had been underpaid a total of $57,179.69".
  • Ten of the employees were aged under 21
FWO alleged that 35 employees “who worked across the Little Cupcakes stores and the baking facility between January 2018 to February 2019 had been underpaid a total of $57,179.69".
“Fair Work Inspectors audited Shri Krishna Guru when targeting restaurants and cafes in the popular Degraves Street and Hardware Lane dining strips in the Melbourne CBD with unannounced workplace visits,” FWO said in a statement.
Ten of the employees were juniors aged under 21, and most of the employees were visa holders, from countries including South Korea, India and Indonesia.
Fair Work Ombudsman Sandra Parker said the alleged underpayment of young and vulnerable workers was particularly concerning.
Hundreds of thousands of dollars have been recouped from businesses in Western Sydney which were discovered to be underpaying their workers.
Hundreds of thousands of dollars have been recouped from businesses in Western Sydney which were discovered to be underpaying their workers. Source: AAP
According to the FWO, most of the employees were allegedly underpaid in casual loadings, leave loadings, minimum-engagement pay, minimum hourly rates and loadings for the weekend, public holiday, evening and overtime work under the Award.
“It is alleged Shri Krishna Guru Pty Ltd committed multiple contraventions of workplace laws and that (company director Shreyansh Dharmesh) Mr Shah was involved in all contraventions," the FWO said.

“The company faces penalties of up to $63,000 per contravention from the Court, while Mr Shah faces penalties of up to $12,600 per contravention.”

“Underpayments of individual workers range from $20.08 to $10,960.77. The company has rectified the alleged underpayments in full,” reads the statement by FWO.
The Fair Work Ombudsman provides free advice and assistance to all workers to help them understand their rights. Migrant workers and visa holders, including international students, have the same workplace rights as Australian-born workers.

Learn more about working rights in Australia, .

If you think you're being exploited at work, or are an employer or employee seeking assistance, visit the  or call the Fair Work Infoline on 13 13 94. An interpreter service is available on 13 14 50.

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2 min read
Published 17 July 2020 2:58pm
Updated 17 July 2020 3:56pm
By Vivek Kumar

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