The former operator of a popular Perth restaurant is facing Federal Court action after workplace regulators alleged systematic underpayment of staff over nearly two years.
Legal Action Against Restaurant Operator
GCH Vic Park Pty Ltd, which operated the now-closed Globe Pan and Grill on Albany Highway in East Victoria Park, has been hit with legal proceedings alongside company director Jay Patel. The Fair Work Ombudsman initiated the court action after alleging the business failed to comply with a compliance notice ordering repayment of outstanding wages.
The regulator claims the company short-changed 16 workers, including cooks and food-and-beverage attendants, between December 2021 and July 2023. The affected staff worked across full-time, part-time and casual positions at the establishment.
Details of Alleged Underpayments
According to the Fair Work Ombudsman, employees were denied their lawful entitlements including:
- Minimum wage rates
- Weekend penalty rates
- Accrued but untaken annual leave upon termination
The investigation began as part of a proactive audit of the fast-food, restaurant and cafe sector, highlighting the regulator's increased focus on hospitality industry compliance.
In August 2023, the ombudsman issued a compliance notice requiring the company to calculate and back-pay all outstanding amounts. However, the regulator alleges GCH Vic Park failed to comply without reasonable excuse, and that Mr Patel was directly involved in the breach.
Regulator's Strong Warning to Employers
Fair Work Ombudsman Anna Booth delivered a stern message to hospitality employers, emphasising the regulator's determination to enforce workplace standards.
"We will continue to enforce workplace laws and take employers to court where lawful requests are not complied with," Ms Booth stated. "Any employees with concerns about their pay or entitlements should contact us for free advice and assistance."
The ombudsman is seeking significant penalties, including:
- Up to $46,950 against GCH Vic Park Pty Ltd
- Up to $9,390 against director Jay Patel
The regulator also wants the Federal Court to order the company to fully comply with the original notice, requiring complete rectification of all outstanding entitlements including superannuation and interest payments.
This case serves as a strong reminder to Australian businesses about the importance of maintaining proper wage records and meeting all workplace obligations, particularly in the challenging hospitality sector.
