Another celebrity chef caught in a multi-million dollar wage theft scandal
Another celebrity chef is caught up in a wage theft scandal involving millions of dollars in unpaid entitlements.
Dinner By Heston, a restaurant sponsored by Heston Blumenthal, has gone into liquidation.
Rather than back-pay the outstanding entitlements, owners Tipsy Cake informed Fair Work that it made an application to wind-up the company.
Another celebrity chef rips off workers
Fair Work commenced an investigation into Tipsy Cake as a result of complaints about wage theft earlier this year.
Inspectors found Tipsy Cake paid some employees an annualised salary that didn’t cover weekend and public holiday penalty rates.
In addition, the company failed to pay annual leave loading and overtime rates they were entitled to.
Fair Work says the underpayments involve millions of dollars.
On 14 November, the regulator issued the company a Compliance Notice which required it rectify the underpayments by 13 December.
Furthermore, the Notice required Tipsy Cake to produce evidence of its compliance by 20 December 2019.
Instead, the company applied to wind up the company in the Federal Court and it has now been placed into liquidation.
‘A low act’
Industrial advocate Miles Heffernan from Fair Work Claims described the move to wind up the company as “a low act”.
“This restaurant that has made a fortune off the backs of workers who have not been paid properly,” he said.
“And when it comes to time to pay back what they owe, they close down.
“And surprise, surprise, it’s yet another rip off restaurant with a big noting celebrity chef linked to it.
“Australians are sick and tired of millionaire celebrity chefs like George Calombaris, Neil Perry and Heston Blumenthal ripping off workers so they can make huge profits.”
Fair Work promises to chase wages
Fair Work says it does not have the power to commence legal action against a company that has been wound up.
Instead it says it will do all it can to recover the outstanding entitlements.
In a statement, Ombudsman Sandra Parker said:
“The circumstances of this matter are disappointing.
“The Fair Work Ombudsman will liaise with the provisional liquidator and other relevant stakeholders in order to assist the employees to recover their entitlements.”
Criminal penalties urgently needed
Mr Heffernan called on the federal government to introduce criminal penalties for wage theft.
“Think about it: this disgraceful company has stolen millions of dollars from its workers, and all they have to do is wind it up and its directors can move on to open other businesses without having to pay anyone what they owe,” he said.
“Not only is that unfair – it also proves that current laws are an absolute joke,” he said.
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