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Home > News > 2018 > March > Doughnut Time not so sweet to workers

Doughnut Time not so sweet to workers

Doughtnut_time.pngAll stores of the failed hospitality company Doughnut Time are set to close, stranding workers with $200,000 in unpaid wages.


The company, which operated 30 stores at its peak, has now entered voluntary administration.


Some workers were notified by email that a planned take-over of a number of Doughnut Time stores had failed and instead liquidators would be appointed to dissolve the company.


Many others were not communicated with regarding the company’s liquidation.


The liquidation is not expected to produce any dividends to compensate unpaid workers.


The only likely redress for workers will be the tax-payer funded Fair Entitlements Guarantee (FEG) which provides payment of up to 13 weeks of unpaid wages and outstanding leave entitlements to Australian citizens and permanent residents.


Employees owed more than 13 weeks’ wages and international workers are not able to reclaim unpaid entitlements through the scheme.


The ABC reports many international students were employed by Doughnut Time and will be highly unlikely to recoup their lost wages.


The proposed sale of a number of Doughnut Time stores fell through after owner Damian Griffiths refused to sign over the trademark to the proposed buyer, the company’s former CEO Dan Strachotta.


IEUA-QNT Branch Secretary Terry Burke said workers were often left in the lurch when companies failed.


“Workers after often the last to know when businesses are in trouble and then suddenly left to deal with the loss of employment as well as unpaid wages and entitlements,” Mr Burke said.


“Workers also lack proper recourse to recoup lost wages; the FEG scheme, while providing some relief, will be of little assistance to international workers and those with significant entitlements owing.”


Mr Burke said the demise of Doughnut Time was yet more evidence that our industrial rules are broken.


“When employers can simply write off debt and strand employees with lost wages and entitlements that will never be paid, it is clear that the system is broken,” Mr Burke said.


“We need adequate protections to ensure all workers receive their full entitlements, even when businesses fail.


“It’s time to change the rules.”


Reports about unfair work practices, such as underpayment or non-payment of wages can now be made anonymously to the Fair Work Ombudsman.


Read more about the campaign to Change the Rules and make our industrial landscape fairer at www.changetherules.org.au

Image source: Facebook

Authorised by Terry Burke, Independent Education Union of Australia – Queensland & Northern Territory Branch, Brisbane.