Burger Buzz boss fined more than $310k for exploiting workers

The second legal action was launched in December 2016 in response to Buzza and his company continuing to flout the law for refusing to pay wages to another five employees who worked at the Brunswick outlet, amounting to a total of $7513.

Most of the underpaid workers were young or overseas workers, including a number of university students and 417 working holiday visa-holders.

They were generally engaged for short periods of between five days and 11 weeks and often worked night and weekend shifts.

The workers gave evidence of the impact the underpayments had on their lives, including contributing to difficulties in affording rent, food and paying bills, and needing to borrow money from family members.

One worker said he had to sell belongings to be able to afford to buy food and pay his rent, while another said she had to move interstate to live with her parents because she could no longer afford to live in Melbourne.

Five of the employees were paid nothing, while most of the others were paid less than half of what they were entitled to and that was often only after they made extensive efforts to chase Buzza for their wages.

Loading

Court documents revealed one employee received no payment for her month of employment, including over 33 hours of weekend work.

Buzza told the same employee that he paid an hourly rate to $17 to new staff and $20 for experienced team members who took on additional duties.

But the Fair Work Ombudsman said employees are entitled to a minimum hourly rate of $18.47 under the award plus penalty rates.

Judge Jones said Buzza and his company had “shown no genuine contrition or remorse”.

“Employers should be in no doubt that they carry a responsibility to ensure that they comply with the obligations which they owe to their employees under the law,” she said.

Fair Work Ombudsman Natalie James said the judgment was the latest in a string of penalties dished out to the hospitality industry to improve widespread non-compliance.

Ms James said employers as blatant and callous as Buzza and his company were rare – but a recurring theme in the widespread non-compliance in the hospitality industry is employers failing to appreciate the seriousness of underpaying basic minimum entitlements and the impact that has on workers.

“It is completely unacceptable that workers should have to struggle to afford food, rent and bills because their employer fails to pay them what they are lawfully entitled to – but that is the unfortunate reality for some workers,” she said.

Restaurants, cafés and takeaway food outlets accounted for 29 per cent of the Fair Work Ombudsman’s litigations in 2015-16 and 2016-17.

In December 2013, Consumer Affairs Victoria issued a public warning about Mr Buzza’s deceptive conduct stemming from a conviction in the Ringwood Magistrates Court.

The court found Mr Buzza guilty for failing to disclose bankruptcy to customers of his building services companies.