'Paying like $8 an hour': Red Rooster stores under investigation for underpaying staff
A Seven News investigation has revealed some Red Rooster franchisees have been underpaying staff, particularly migrant workers.
Whistleblowers from of one of the nation's most popular fast food chains say young employees have been ripped off.
Fair Work Commission officers have acted swiftly to simultaneously raid seven take-away outlets on Brisbane's southside on Monday afternoon, following a three-month 7 News underpayment investigation.
Brisbane’s Camp Hill, Mt Gravatt, Cannon Hill, Inala, Underwood, Wishart and Forest Lake stores are at the centre of the review.
An assistant manager claimed the franchisees targeted migrant workers, particularly from India.
"My actual pay rate that time, which I got now, my actual pay rate was $28 and he was just paying me $15."
One whistleblower told 7 News “They underpay the people. They are paying like $8 an hour."
Another claimed: "[They are] all overseas people. Doesn't matter if they're from India or somewhere else."
"So many people struggle because of that and it’s not even one Red Rooster [store]."
Red Rooster CEO Chris Green told 7 News the franchise agreements of those under investigation had since been terminated.
"We've got zero tolerance for any breaches of employment guidelines and that's why we terminated their franchise agreements.
Workers at the Camp Hill store, operated by a company whose director is Dhavel Patel, claim they were intimidated.
Mr Patel did not respond to numerous requests for an interview.
A former employee said management threatened to have workers’ visas cancelled, or have them deported if they complained about pay.
Seven News has obtained the attendance report showing hours worked at several Red Rooster stores.
A cross-check of the report against an employee’s payslip for one week appeared to show they worked 56 hours but were only paid for 26.75 hours.
The new revelations come five years after the Fair Work Ombudsman reprimanded the Red Rooster head office for similar underpayment practices.
