By: Joshua Kindl
A Canberra-based Nando’s franchisee failed to uphold appropriate workplace conditions by underpaying his employees by up to $169.08 per shift.
Several former employees of Jerome Tyrell Selvan, owner of Nando’s Canberra Civic, reported they were underpaid by as much as $28.18 per hour during their employment with Mr Selvan.
Tyler Grindal and Madeline Calo, both 19, are students at the Australian National University and former employees of Mr Selvan.
At center of allegations: Nando’s Canberra Civic. Image: Joshua Kindl
Mr Grindal and Ms Calo said they were both paid an $18.00 hourly flat rate for all hours worked, including weekends.
“I didn’t get penalty rates, or anything like that,” said Mr Grindal
A third employee, Mark Smith*, worked at the Nando’s Canberra Civic from February 2015 to March 2016. Like Mr Grindal and Ms Calo, Mr Smith was never paid more than the $18.00 hourly rate.
According to the Fair Work Ombudsman, Mr Selvan’s employees are protected under the Restaurant Industry Award 2010.
Employed casually, all three workers were classified as Level 2 Food and Beverage Attendants – Grade 2, entitling them to rates of pay at: $23.09 per ordinary weekly hour; $27.71 per hour on weekends; and $46.18 per hour on public holidays.
Instead they were paid a flat rate of $18.00 for all ordinary, weekend, and public holiday hours worked, resulting in an hourly underpayment of $5.09, $9.71, and $28.18 respectively.
In February 2016, Mr Selvan signed an Enforceable Undertaking with the Fair Work Ombudsman following their investigation into the franchise, in which her admitted to breaching section 45 of the FW Act which states: “A person must not contravene a term of a modern award.”
Ms Calo’s payslip period 27/07/15 – 09/08/15, showing a minimum underpayment of $5.09 p/h for all hours worked. Image: Supplied
The Fair Work Ombudsman’s findings against Mr Selvan for the 2014–15 financial year include: failure to pay employee’s correct ordinary hourly rates of pay; casual loading on the ordinary hourly rate; junior hourly rate; and Saturday, Sunday, and Public Holiday penalty rates.
Both Ms Calo and Mr Smith said that they did not receive payment for lost wages from Mr Selvan, and allege that they were underpaid through to August 2015, and March 2016 respectively, following the FWO investigation.
“When we found out, [Mr Selvan told us] that we weren’t considered to be underpaid, so I thought it didn’t affect me,” Mr Smith said.
“I know people who were paid, but I wasn’t one of them.”
Mr Selvan declined to answer questions concerning his former employees and instances of underpayment following his signing an Enforceable Undertaking this February, adding that he made all repayments for lost wages.
“I have done what is right,” Mr Selvan said.
Representative of Unions ACT, Alex White, said in February that underpaying staff “happens in almost every small business and franchise in Australia.”
A 2015 investigation into 7-Eleven stores by Four Corners and Fairfax Media found a “systemic underpayment of wages and the doctoring of payroll records within the country’s biggest convenience store chain.”
A comparison of Ms Calo’s total earnings during the period 27/07/15 – 09/08/15 (six-hour shift average) to Industry Award rate, illustrating lost wages exceeding $150.00 per shift.
Ms Calo was 18 and new to Canberra when she started working at Nando’s Canberra Civic. Like some of her former colleagues, this was her first job.
“It was often people’s first job, so they didn’t have a huge knowledge of what their workplace rights were,” she said.
“I thought it was a situation where people were probably exploited, especially in regards to people working on weekends.”
Like Ms Calo, Mr Smith was 18 when he took up his role at Nando’s Canberra Civic.
“$18.00 sounded pretty good to me,” he said.
“It’s only now, I guess, that I found out it wasn’t the case.”
The Fair Work Ombusdman spokesperson requested that any workers requiring assistance contact FWO on 13 13 94, or visit www.fairwork.gov.au.
*Name has been changed to protect identity.
