Dandenong restaurant workers were among almost 250 who were underpaid their Christmas Day entitlements.
The operator of a dozen restaurants across Melbourne will have to pay staff $21,700 following Fair Work Ombudsman intervention.
The largest individual underpayment was $181.
Fair Work Ombudsman Natalie James said the restaurant operator mistakenly believed they could declare Christmas Day a shut-down rather than pay permanent employees for a day off for a public holiday.
She said Fair Work inspectors believed the employer made a genuine error and co-operated with the agency so avoided enforcement action.
But Ms James said the case highlighted the importance of employers taking the necessary steps to ensure they understood the wage rates applicable to their employees, including penalty rates.
“Our website can assist employers and workers alike understand and comply with their rights and obligations so there aren’t any issues arising around public holidays,” she said.
Ms James said most underpayments were inadvertent and the result of employers failing to check their minimum obligations under workplace laws.
“When we find errors, our preference is to educate employers about their obligations and assist them to put processes in place to ensure the mistakes are not repeated,” she said.
Visit www.fairwork.gov.au or call 13 13 94 for advice. A free interpreter service is available on 13 14 50.