Ah, the aroma of freshly baked bread! It truly is one of life's delightful and uncomplicated joys, don't you agree? For many of us, it evokes a sense of nostalgia—a reminder of a time when the local bakery was more than just a place to purchase bread.

Bakers, including the well-known Bakers Delight, play a significant role in this culinary landscape.

This bakery is celebrated for its exceptional assortment of freshly baked bread, buns, and delectable pastries.

Bakers Delight is the latest company to face underpayment allegations. Image by Pexels from pixabay

However, dear readers, some recent ‘unappetising’ news regarding this beloved bakery chain may leave a rather unpleasant impression.

The renowned bakery brand, Bakers Delight, is currently facing significant scrutiny.

Disturbing allegations have surfaced, indicating that they have underpaid 142 employees at three of their Hobart, Tasmania stores, resulting in a staggering total of $1.25 million in unpaid wages!

Underpayment refers to employers paying employees less than their minimum legal entitlement.

It can include unpaid wages, underpaid hours or rates, unpaid penalty rates, unauthorised deductions, and unreasonable ‘pay-back’ demands.

In this case, according to the Fair Work Ombudsman, Bakers Delight Holdings—the franchise operator in Australia—is liable for allegedly underpaying workers by $642,162 between February 2019 and October 2020.

The couple who owned and managed the franchises—John Vince Puglisi and Lisa Kay Puglisi, including their company Make Dough Enterprises, are part of the ongoing legal action.

Legal action has been initiated against the owners of the stores as well as their company. Source: Bakers Delight

The majority of underpaid staff were young workers, some as young as 14, and also included visa holders—those who might find it more challenging to navigate employment rights.

One alleged underpayment reached a high of $106,281 for an apprentice baker.

The firms were placed into liquidation, followed by the abrupt closure of all three Hobart outlets.

Breaches reported included unpaid wages, unwarranted deductions from termination pay, and unpaid penalty rates for weekends and public holidays.

Bakers Delight Holdings claims they did extend an offer to pay back the complete amount owed to the staff. However, they allege the Ombudsman rejected the offer.

'We apologise to those employees affected by this and are determined to ensure that everyone employed under the brand always receives their full and correct entitlements,' stated a spokesperson for Bakers Delight.

With the first hearing of the Federal Court case set for late July, we eagerly wait to see where this leads.

Key Takeaways

• Bakers Delight is facing legal action, accused of underpaying 142 staff from three stores in Hobart, Tasmania by $1.25 million.
  
• The Fair Work Ombudsman alleges that Bakers Delight Holdings is responsible for $642,162 in underpayments between February 2019 and October 2020.
  
• Legal action has also been taken against the owners of the stores, John Vince Puglisi and Lisa Kay Puglisi, and their company, Make Dough Enterprises.
  
• A Bakers Delight Holdings spokesman has disputed the accusations and stated that the ombudsman rejected the company's offer to backpay employees.

Don't forget, whether, at your favourite local bakery or globally recognised chains, it's always important to be aware of the conditions in which your products are being made.

As consumers, we can help shape and change industries for the better, promoting fairness in pay and working conditions, one loaf at a time.

So, members: what are your thoughts on this story?

 

[Suzanne rose]

I can't even imagine how many businesses are under paying their staff

My daughter is at uni doing a Masters degree and has worked right through school and uni .
Worked worked with me for five years until we closed down she was very happy with her pay.

She has now been working in a Cafe for two years including Saturday and Sunday and is paid for weekends the same rate as week days including public holidays.

Funny thing is on public holidays they charge a surcharge stating it to cover staff for working on a holiday

 

[Gsr]

There seems to be an ever increasing amount of companies under paying their staff, from supermarket chains to small privately owned businesses. When they are caught they need to be fined heavily and made to pay interest on all unpaid wages owed to employees at the current interest rate, back dated for the whole time they have been ripping off their employees. The deterrent needs to be hefty and made public to discourage other companies from doing the same. Hefty fines should also be imposed on the hierarchy of the companies as individuals, as surely they have some responsibility to make sure proper wages are paid to their workers.

 

[KSS]

I do not believe that most cases of wages underpayment are a deliberate action by the employer. Most employers do want to do the right thing and try their best, especially small businesses. However, the complexity of all the various award schemes (which change constantly) under which people are paid is very difficult to navigate and get right. The fact that it usually takes a dedicated team of highly experienced people to investigate and apply the relevant payment structures and add-ons to come up with their adjudication of whether people have been paid their due tells me just how complex this all is.

I am not defending the truly deceptive employers. but most employers are not deliberately trying to do the wrong thing and do not deserve the keyboard criticism that these stories attract.

 

[margaretritchie48]

I was a payroll clerk between 1970 to the 2000 and in charge of people who did payroll during this time. It's obvious that people who underpaid employees had no idea of awards etc. There should be certificates to acknowledge that people have done a course in all aspects of payroll etc.

 

[Ezzy]

I can't even imagine how many businesses are under paying their staff

My daughter is at uni doing a Masters degree and has worked right through school and uni .
Worked worked with me for five years until we closed down she was very happy with her pay.

She has now been working in a Cafe for two years including Saturday and Sunday and is paid for weekends the same rate as week days including public holidays.

Funny thing is on public holidays they charge a surcharge stating it to cover staff for working on a holiday

Is your daughter being underpaid for her weekend & public holiday work?
A penalty rate charged to customers must equate to between 2% & 5% of an account. This leaves a big margin to pay staff a penalty rate with a bit for profit, l believe.

 

[Rhondda@Benji]

I can't even imagine how many businesses are under paying their staff

My daughter is at uni doing a Masters degree and has worked right through school and uni .
Worked worked with me for five years until we closed down she was very happy with her pay.

She has now been working in a Cafe for two years including Saturday and Sunday and is paid for weekends the same rate as week days including public holidays.

Funny thing is on public holidays they charge a surcharge stating it to cover staff for working on a holiday

Either you or your daughter look up the Fair Work Ombudsman on the internet and the site will tell you how much she should be paid for Monday to Friday and penalty rates for public holidays. They have ALL the information she will need to see about working on weekends as well. Good luck and I hope your daughter gets a nice surprise with her backpay.

 

[Suzanne rose]

Is your daughter being underpaid for her weekend & public holiday work?
A penalty rate charged to customers must equate to between 2% & 5% of an account. This leaves a big margin to pay staff a penalty rate with a bit for profit, l believe.

She gets normal weekly rate for Saturday, Sunday and public holidays so the one hourly rate of $25 an hour regardless yet they charge customers a surcharge on public holidays

 

[Rhondda@Benji]

She gets normal weekly rate for Saturday, Sunday and public holidays so the one hourly rate of $25 an hour regardless yet they charge customers a surcharge on public holidays

Did you look at the website I told you about as they have ALL the amounts she should get as well as all the awards. As of the 1st of July 2023 the minimum increased to $882.80 per week or $23.33 per hour. Award minimum wages increased by 5.75%. It would be in your daughters' best interest and yours to have a look at this site.

 

[Ezzy]

She gets normal weekly rate for Saturday, Sunday and public holidays so the one hourly rate of $25 an hour regardless yet they charge customers a surcharge on public holidays

Thankyou Suzanne rose. I haven't done my maths but will let you do so with the info supplied by Rhondda@Benji.

Another thought is that perhaps her employer pays a flat rate at all times which takes in the extra paid for those times.
(In my previous shift work job, the Govt. employer calculated a wage using a flat rate plus shift loadings & public holiday loadings for a year then divided this by 26 to reflect a fortnightly wage for every person).

 

[Suzanne rose]

Did you look at the website I told you about as they have ALL the amounts she should get as well as all the awards. As of the 1st of July 2023 the minimum increased to $882.80 per week or $23.33 per hour. Award minimum wages increased by 5.75%. It would be in your daughters' best interest and yours to have a look at this site.

We did look it up and she is being under paid.

 

[Ezzy]

We did look it up and she is being under paid.

O.K. Thankyou again. I hope a positive solution can be worked out to your daughter's benefit.
These problems seem to be rampant in some areas & unless bought to light will go unfixed.