On 5 June 2026, the Fair Work Ombudsman (FWO) secured a $5,000 court penalty against Serotonin Eatery Exercise Education Pty Ltd, the operator of Serotonin Eatery in Burnley, Melbourne — a café that markets itself as the “world’s first happiness centre.”

This case serves as a timely reminder for all Australian businesses, especially in the hospitality sector, about the serious consequences of failing to comply with Fair Work obligations.

What Happened?

• The company employed a casual food and beverage attendant in November–December 2024.
• It failed to pay the worker minimum wages and weekend penalty rates under the Restaurant Industry Award 2020.
• Following a worker’s request for assistance, a Fair Work Inspector issued a Compliance Notice in August 2025 requiring back-payment.
• The company only paid the owed wages after the FWO commenced legal action.
• The Federal Circuit and Family Court imposed the $5,000 penalty for non-compliance with the Compliance Notice.

Key Takeaways from the FWO

Fair Work Ombudsman Anna Booth stated:

Employers that failed to act on Compliance Notices needed to be aware they could face court-imposed penalties on top of having to pay workers.

She also highlighted that improving compliance in the fast food, restaurants, and cafés sector remains a priority for the FWO.

In 2024–25 alone, the FWO secured over $870,000 in court penalties for failures to comply with Compliance Notices.

Why This Matters for SMEs

Compliance Notices are a common tool used by the FWO to address underpayments quickly. Ignoring them can lead to:

• Additional court penalties (on top of back-payments)
• Legal costs
• Reputational damage
• Increased scrutiny from regulators

Hospitality businesses are under particular focus due to high rates of casual employment, penalty rates, and award complexities.

How HR Bridge Australia Helps You Avoid These Risks

At HR Bridge Australia, we support Perth and WA SMEs (and businesses nationwide) with practical, tailored solutions to stay compliant:

• Compliance gap analyses and award interpretation for hospitality and other sectors
• Custom employment contracts and policies (including casual conversion, pay rates, and record-keeping)
• Payroll audits and back-pay calculations
• Manager training on responding to Compliance Notices and FWO requests
• Full outsourced HR and compliances support to reduce your risk

Proactive compliance is far more cost-effective than dealing with penalties, legal action, or underpayment claims.

Don’t wait for a worker complaint or FWO inspection. Ensure your business is protected while treating your team fairly.

Need help reviewing your pay practices, updating contracts, or conducting a compliance audit? Contact HR Bridge Australia today for a no-obligation consultation.

HR Bridge Australia — Expert HR Outsourcing | Fair Work Compliance | Recruitment & Policies for SMEs Leederville, Perth WA | Serving businesses across Australia www.hrbridgeau.com | Contact Us