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The Fun Tea chain of cafes in Adelaide has gone into liquidation, in a move that workers fear could leave them thousands of dollars out of pocket.
- One of the Fun Tea shops was the site of a young worker's assault earlier this year
- The Fair Work Ombudsman launched legal action against its operator in September
- The business was placed into liquidation on November 19
A video of a waitress being slapped and kicked by a patron at the Gouger Street Fun Tea cafe when she complained about being underpaid sparked public outrage when it went viral on social media earlier this year.
In September, the Fair Work Ombudsman (FWO) launched legal action against Yuxuan Group, which operates Fun Tea outlets on Gouger Street, York Street and Rundle Mall.
The ombudsman accused the operator of underpaying more than 20 employees $186,000.
The workers allege they were paid flat rates of $10 to $18 an hour, which is less than their entitlements under the Fast Food Industry Award.
Some of the workers were visa holders, including international students, and four of the workers were aged under 21.
SA Unions has reported that since the legal action commenced, a number of workers continued to not receive wages, some for up to seven weeks.
Workers also allege that they have been paid a part-time hourly rate, despite being casual employees who are entitled to a casual loading.
SA Unions Secretary Dale Beasley said far too often in the hospitality industry workers missed out on the wages they believed they were owed when a company went into liquidation because there was not much to sell.
"We have a situation where our laws are not strong enough," he said.
"Wage thieves are able to shut the doors and walk away, leaving their victims out of pocket, high and dry, with little chance of getting what they're owed.
"For insecure workers, missing out on what they're owed could mean slipping into poverty, becoming homeless, unable to support their families — and we know that's a cycle that is difficult to break out of."
In April, an ombudsman audit of cafes and fast food outlets across Adelaide's Chinatown precinct found high levels of non-compliance with pay and penalty rates.
Fun Tea has been contacted for comment.