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Investigators from the underpayment watchdog have launched surprise inspections on 15 stores of troubled bubble tea chain, Sharetea, after allegations that some staff members were being paid flat wages below legal minimums.
Many of Sharetea Australia’s workers are Mandarin-speakers here on visas, factors that have made employees vulnerable to underpayment in other cases because of a lack of knowledge of workplace rights and fear of visa cancellations.
Sharetea Australia is at odds with the Taiwanese giant originally behind the brand.Credit:Edwina Pickles
Inspectors from the Fair Work Ombudsman (FWO) checked pay records and spoke with staff at Sharetea stores in four states and territories, including in Sydney and Melbourne, during the unannounced visits on Wednesday, which were triggered by reports from staff and “compliance history”. Stores owned by franchisees and the company itself were checked as part of the lengthy investigation.
“Our inspectors are gathering information about Sharetea’s operations to determine if there are any workplace laws breaches and to hold those responsible to account,” said ombudsman, Sandra Parker.
“Contact us,” Parker added. “You can do so in your language, anonymously and without visa fears.”
The owner of a Sharetea store that was inspected on Wednesday, who requested anonymity, said he wasn’t shocked or concerned about the unannounced inspection. The inspector asked two employees working at the time several questions about their wages and took photos of the work roster and payslips.
Each store in the franchising network sets its own pay rates. “We don’t get a lot of guidelines or assistance from the head office,” he said. The store owner said he paid his employees according to Fair Work industry award rates and felt “99 per cent” confident he was not in breach of pay laws.
The Sydney Morning Herald and The Age have previously revealed Sharetea settled five underpayment claims in 2019 and is facing a lawsuit from the Taiwanese company that created the brand, alleging the Australian franchisor is using its name unlawfully.
Sharetea Australia did not respond to repeated requests for comment. A public relations consultant previously engaged by the company is no longer working for it.