The Macedon Lounge, a restaurant in Victoria’s Macedon Ranges, is facing a potential fine of more than $1.1 million for allegedly underpaying four young former staff members.

Wage Inspectorate Victoria – a body that investigates and prosecutes wage theft offences in the state – has filed 94 criminal charges against the venue and its “officer”, alleging that they dishonestly withheld more than $7000 in employee entitlements –
including wages, penalty rates and super – between July and November 2021.

The maximum penalty for companies responsible for deliberate and dishonest conduct
is more than $1.1 million, and for individuals it’s up to 10 years’ imprisonment.

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The charges filed against Rehmat & Mehar Pty Ltd, which is trading as The Macedon Lounge, are the first criminal wage theft charges laid under the Victorian Wage Theft Act 2020 – and the first in any Australian jurisdiction. Last July, it became a crime for an employer in Victoria to dishonestly underpay employees or withhold their entitlements.

“There are serious penalties for dishonestly withholding employee entitlements in Victoria,” commissioner of Wage Inspectorate Victoria, Robert Hortle, said in a statement. “These are the only standalone, criminal wage theft laws in Australia.

“Wage Inspectorate is doggedly investigating wage theft reports and intends to bring further appropriate matters before the court.”

This matter has been listed for mention in the Broadmeadows Magistrates’ Court on February 21, 2023.