Brisbane cafe accused of paying its staff with food, instead of money - Fair Work ombudsman alleges

The operators of a Brisbane cafe allegedly partially paid some of it employees in food and drink, according to the Fair Work Ombudsman.

Visa holders - including junior workers aged under 21 - were paid in meals, desserts and drinks over two periods between August 2017 and January 2018, the regulator will allege in the Federal Circuit Court.

Eleven employees from Cafe Chermside at the Westfield Chermside shopping centre in suburban allegedy underpaid by Timi Trading Pty Ltd had worked as cooks, kitchen attendants and food and beverage attendants.

Company director Tien Hoang Le, company manager Minh Vo Duy Nguyen and company owner-director Hamish Watson are scheduled to face a directions hearing in Brisbane next February.

Fair Work Ombudsman Sandra Parker said the regulator sent in its inspectors to investigate after receiving underpayment allegations.

"All employees in Australia are entitled to be paid the minimum pay rates that apply to their positions – in money, not food," Ms Parker said.

"Businesses should be aware that we are cracking down on the underpayment of vulnerable workers in the fast food, restaurant and café sector as a priority."

The Fair Work Ombudsman's annual report has revealed that $40 million is stolen or lost wages was recovered for 18,000 workers in the year to June 30.

More than half of the litigation filed involved businesses in the fast food, restaurants and cafe sector, which secured more than $1.6 million in penalties against employers.

Fair Work is alleging that by paying workers in food and drink, the operators of Timi Trading breached the the Fair Work Act requiring that employees be paid in money.

Inspectors allegedly found that eight of the 11 employees were paid according to Individual Flexibility Agreements (IFA) that provide for flat hourly rates and bonuses and allowances instead of being provided with entitlements under the Restaurant Industry Award, such as overtime and penalty rates.

Under the IFA allowances allegedly used, employees were allowed food and drink worth $42 per day including $20 in meals, $7 in desserts and $15 in drinks.

Timi Trading is also accused of providing inspectors with false and misleading records and failing to pay one employee for taking leave on a public holiday.

"If we consider that employers are breaching their lawful obligation, we will take enforcement action so employees receive what they are entitled to," Ms Parker said.

If the allegations are proven, Timi Trading faces maximum penalties per breach of up to $63,000, while the directors and operators face maximum penalties per breach of up to $12,600.