Yahoo Finance Cafe chain 85 Degrees allegedly underpays $429,000
Taiwanese cafe chain 85 Degrees has been hauled to court by the Fair Work Ombudsman (FWO), which has alleged that the chain underpaid eight students more than $429,000.
The workers were students at Taiwan’s Taipei City University of Science and Technology and had come to Australia on working class visas under an ‘internship’ arrangement between the 85 Degrees franchise operator and the University.
However, the FWO alleges the eight students performed work that didn’t fit the definition of an internship, and that 85 Degrees underpaid them a combined $429,000.
Between July 2016 and July 2017, the workers carried out between 60-70 hours of work a week, packing and preparing bread products and cakes, and cleaning, according to the FWO.
As such, the Ombudsman claims the workers were entitled to award rates, overtime rates, penalty rates, annual leave and superannuation totalling $50,000 each, or a combined $429,393.18.
The eight employees worked at various 85 Degree factories and cafe outlets in St Peters, Hurstville, and George Street in Sydney’s CBD and were all between the ages of 20 and 22 and spoke little English.
The franchisor also broke record-keeping and pay slip laws, the FWO is alleging.
85 Degrees in hot water
It also isn’t the first time that 85 Degrees has been caught mistreating Chinese and Taiwanese visa holders; the business entered into an Enforceable Undertaking with the FWO in 2015.
The Ombudsman investigated the matter after receiving tip-offs from the Taiwanese students, who were studying.
“Where there are alleged breaches of an Enforceable Undertaking, the FWO will not hesitate to take the business to court,” said Fair Work Ombudsman Sandra Parker.
The companies will face a court order from the FWO to rectify the underpayments, while the franchise operator and the 85 Degrees business will face penalties of as much as $54,000 per contravention for breaking workplace laws.
“All franchisors setting up operations in Australia must abide by our laws and pay the lawful minimum pay rates that apply to all workers, regardless of nationality or visa status,” said Parker.
She urged any workers with concerns to contact the FWO.
The matter will be heard in the Sydney Federal Court soon.
Yahoo Finance has reached out to the Fair Work Ombudsman for comment.
Workers and employers can contact the FWO at its website or call the Infoline at 13 13 94 for free advice.
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