The Fair Work Ombudsman (FWO) has revealed it recovered a record $358 million in unpaid wages and entitlements for more than 249,000 workers in 2024–25. Strikingly, around 60 per cent of that money — $213 million — came from large corporate employers, but smaller hospitality venues were also caught out.
One of the most serious cases involved Adelaide-based Mr Viet Restaurants, fined $395,000 for underpaying staff, falsifying records, denying breaks and even forcing employees to buy food for managers as “punishment” for workplace mistakes.
The FWO’s figures show wage underpayment isn’t just a “big business” problem. Venues of all sizes should review payroll systems, train managers and check compliance with awards and agreements to avoid costly mistakes.
Fast food, restaurant and cafes under the spotlight
In its 2024-25 Annual Report, the FWO says the fast food, restaurant and café sector remains a top priority because of ongoing non-compliance. Many workers are young, casual or on visas and may not know their rights or feel confident speaking up.
In 2024–25, the FWO recovered $3.1 million for 1,814 underpaid workers in this sector and issued hundreds of notices, with 18 per cent of all anonymous reports relating to these workplaces. Surprise inspections uncovered underpayment of wages and penalty rates, unpaid overtime and poor record-keeping.
Major enforcement actions included $16 million in court penalties, among them a record $15.3 million fine against the operators of Sushi Bay for deliberately exploiting migrant workers. Even franchisors weren’t immune — Chatime was penalised $132,840 for failing to pay its own staff.
Tips for tourism and hospitality operators
- Pay correctly — minimum wages, overtime, loadings and allowances are non-negotiable.
- Give proper breaks and keep accurate records.
- Respect your team — exploitative practices hurt morale and retention.
- Invest in culture — fairness and transparency help you attract and keep good people.
The takeaway? Compliance isn’t optional. Paying staff correctly protects your business, your reputation and the future of Australia’s hospitality industry.
For further information on paying wages correctly, visit the website of the Fair Work Ombudsman.