Hungry Jack’s franchise accused of underpaying young staff

Sarah Stowe

The operator of a Hungry Jack’s franchise in Bendigo, Victoria, will face court for allegedly underpaying staff more than $105,000.

Chamdale Pty Ltd operates the outlet on the corner of High and Thistle streets, and it is alleged the company underpaid 181 of its employees a total of $105,148 between July 2005 and December 2009.

Most of the alleged underpayments involved juniors, some as young as 14, who generally worked in customer service and food preparation roles and were variously employed on a full-time, part-time or casual basis.

The Fair Work Ombudsman claims the company underpaid its staff the minimum hourly rate, overtime and public holiday penalty rates, annual leave entitlements and a laundry allowance. The largest amount allegedly owed to an individual employee is $8,384.

Fair Work inspectors discovered the alleged underpayments when they investigated complaints from some employees.

Fair Work Ombudsman Nicholas Wilson says the Agency decided to take the matter to court because of the large amount involved and the employerÕs failure to rectify the alleged underpayments.

Wilson said another key factor was the large number of young and vulnerable employees who had allegedly been short-changed. “Teenagers are often not fully aware of their workplace rights and can be reluctant to complain, so we treat very seriously any alleged underpayment of this vulnerable group in our society.”

As well as penalties, the Fair Work Ombudsman is also seeking a Court Order for Chamdale to rectify the alleged underpayments, with the company facing maximum penalties of $33,000 per breach.

The matter is listed for hearing in the Federal Magistrates Court in Melbourne on 16 November. The case follows another investigation by the Fair Work Ombudsman into Hungry Jack’s which resulted in the burger franchise being fined more than $100,000 for underpaying Tasmanian staff. Read more here.