Chatime Australia faces penalties for underpaying workers

Chatime Australia and its executive is facing penalties due to the underpayment of employees at 19 stores across Sydney and Melbourne.

The Federal Circuit and Family Court has imposed $120,960 penalty against Chatime Australia and $11,880 against the bubble tea chain franchisor’s MD Chen Zhao for the offence.

The Fair Work Ombudsman said that the company paid its employees flat rates as low as $7.59 to $24.30 per hour. It also did not pay Fast Food Industry Award entitlements such as loading and penalty rates.

The offence concerns 152 employees, including 41 junior workers aged below 21 and 95 visa holders, many of which are international students.

These staff are working at 10 Chatime stores across Sydney in Bondi Junction, Chatswood, Wetherill Park and the CBD; and nine Chatime stores across Melbourne in Dandenong, Doncaster, Glen Waverley, Cheltenham, and the CBD.

Judge Nicholas Manousaridis rejected Chatime Australia’s submission that the offence should not be categorised as “serious” or “substantial.”

Manousaridis also emphasised the need to penalise Zhao to hold him accountable and deter other company managers from committing the misconduct.

“Penalties should be set to signal to persons who manage companies that they will be met with substantial penalties if, through their neglect, they permit companies they manage to contravene terms of an award or any other industrial laws or instruments that might apply,” said Manousaridis.

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