The busy city suburbs where 91 per cent of restaurants are underpaying staff

Restaurants in one of Australia's biggest cities have been uncovered as among the worst in the country for ripping off workers.

Inspectors found that 91 per cent of outlets visited in the western Sydney suburbs of Parramatta and Harris Park were underpaying, with staff left hundreds of thousands of dollars out of pocket.

Acting on tip-offs, Fair Work investigators found hundreds of restaurant staff being served a raw deal.

Hundreds of restaurant staff in busy Sydney suburbs have been getting a raw deal. Source: 7 News
Hundreds of restaurant staff in busy Sydney suburbs have been getting a raw deal. Source: 7 News

"Businesses who are doing the right thing are at a disadvantage here and they should be concerned about the business around the corner which is ripping off its workers and profiting as a result," Natalie James from Fair Work Ombudsman said.

"We'll take tip-offs and intelligence from wherever it comes, from workers and from competing businesses."

The western Sydney campaign focused on food service businesses, mostly in Cabramatta, Guildford, Mt Druitt, Fairfield, Merrylands, Harris Park and Parramatta.

The campaign focused mostly on restaurant and food service business in Western Sydney. Source: 7 News
The campaign focused mostly on restaurant and food service business in Western Sydney. Source: 7 News

Of the 197 businesses inspected, almost two-thirds, or 64 per cent, were found to be breaking workplace laws.

Nearly $370,000 in unpaid wages and entitlements were recovered for 199 workers.

The Federal government has increased penalties tenfold.

"There is no excuse for workers not getting what they're entitled to and they should be looked after," Minister for Small Business Craig Laundy said.

In one area, 21 out of 23 restaurants were underpaying staff, with one restaurant alone caught underpaying three workers by $10,444.

They were issued a compliance notice and paid staff all the money they were owed.

Many workers in the sector are new Australians who are unaware of their rights. Source: 7 News
Many workers in the sector are new Australians who are unaware of their rights. Source: 7 News

Fair Work says one of the reasons workers in western Sydney get a raw deal is because many are new Australians who are unaware of their rights.

Parramatta and Harris Park have twice the national average of migrants.

To find out more about workplace rights and obligations go to the Fair Work Ombudsman website.