The operators of a well-known Daylesford hotel are facing court, accused of underpaying nearly 100 staff over a two-year period.
Late last week the Fair Work Ombudsman revealed accusations against Louise Maree and Travis Francis Melotte, alleging they owe more than $300k in wages to 97 people who worked for them at the Hotel Frangos and Café Koukla, between May 2017 and July 2019.
They are accused of underpaying food and beverage attendants and cooks, two employees in guest services and a clerical worker, amounting to 15 junior staff aged 15 to 20, and visa holders from Nepal, Pakistan and Armenia.
The majority of the alleged underpayments are in relation to 27 full-time employees on salaries that did not meet the minimum requirements under the Hospitality Industry (General) Award 2010.
Noted were two salaried Nepalese cooks on Regional Sponsored Migration Scheme visas required to work an average of almost 50 hours each week, and without being provided adequate notice to work additional hours. These two are said to be owed a combined amount of just over $80k.
The ombudsman has also alleged that casuals were not paid the minimum wage, nor overtime rates, meal break penalties or casual loading.
Fair Work Ombusdman Sandra Parker says action to protect vulnerable workers continues to be a priority for the agency, and employers need to be aware they risk facing legal action.
“Underpayments resulting from insufficient salaries for employees covered by Awards has become a persistent issue.
“Businesses paying salaries cannot take a ‘set-and-forget’ approach – they must ensure wages being paid cover all minimum entitlements for the hours their employees actually work.”
Ms Melotte faces possible fines of up to $12.6k per breach, for what are thought to be multiple breaches, and the couple together might be penalised the same amount per breach if employees were found to have been forced to work unreasonable additional hours. The final count of alleged breaches will be determined in court.
Fair Work is also petitioning the court for back-pay for the affected staff, including superannuation and interest.
Loelal P/L, which was the employer, showed Louise Maree Melotte as sole director until mid-2020, and Travis Francis Melotte since. The company has been placed into liquidation.
The couple will stand before a directions hearing listed for 1 June, in the Federal Circuit and Family Court in Melbourne.
