The SDA – the state’s largest union – has commenced groundbreaking legal action against a South Australian Cheesecake Shop franchise and its owner, alleging that four migrant workers were underpaid over $1,000,000 in wages and entitlements.
The SDA is alleging that Toost Pty Ltd, the franchisee operating The Cheesecake Shop, Salisbury:
- Failed to pay them for all time worked
- Failed to pay overtime and correct penalty rates
- Operated a cashback scheme
- Misclassified workers
- Denied them paid leave entitlements
- Breached pay slip and record keeping requirements
In addition to backpay, the SDA is seeking penalties against the franchisor (The Cheesecake Shop Pty Ltd) as well as the franchisee for these contraventions of the Fair Work Act and the Retail Award.
The SDA is alleging that the Franchisor was aware, or wilfully blind, of these contraventions and was involved in the franchisee’s contravention of the Award and the Act.
Cheesecake Shop franchisees have form exploiting migrant workers, with the Federal Court ordering $250,000 be paid to another migrant worker in New South Wales.
National wage theft laws must be introduced, criminalising deliberate wage theft once and for all.
Quotes attributable to SDA Secretary Josh Peak:
“From some of the worst underpayments we’ve ever uncovered to illegal cashback schemes, what these workers have been subject to is on par with modern slavery.”
“We’re pursuing over $1 million in unpaid entitlements for 4 workers who we allege have been underpaid, mislead and severely exploited.”
“This is a horrific and gross misuse of power by the Cheesecake Shop franchisee.”
“These visa schemes put migrant workers in powerless situations. Many migrant workers are vulnerable and frightened of the consequences of raising workplace issues.”
“These workers didn’t have the luxury to get up and leave. Their entire livelihoods and well-being in Australia were indebted to their employer.”
“This case is just the tip of the iceberg; we know there are many more employers exploiting migrant workers and committing widespread wage theft.”
“A slap on the wrist is not enough to deter employers from exploiting migrant workers.”
“National wage theft laws must be introduced, criminalising deliberate wage theft.”