Angry backpackers left unpaid after Bondi Beach restaurant closes down

Furious restaurant workers claim their boss ‘duped’ them out of thousands of dollars in unpaid wages after he promised them money before suddenly closing down.  

Skinnys Bar and Grill in Bondi Beach, Sydney, shut its doors last month because it wasn’t making enough money. 

Around a dozen restaurant staff claim they are owed up to eight weeks’ pay each – while a marketing manager says she’s owed $8,000.

The 30-year-old owner, James McGovern (far right), from western Sydney, admitted he has been unable to pay staff after his restaurants failed

Marketing manager Melita Valvcich (left) said she is owed $8,000 after Skinnys closed. The 30-year-old owner, James McGovern (right), from western Sydney, admitted he has been unable to pay staff after his restaurants failed

Head chef Elliot Richards said he is owed $3,600 after working five weeks without pay and kitchen hand Marc Quesada said he is owed $4280.50 before tax.

Mr Richards said he continued working because he was told there was a ‘banking error’ and he would soon get his money – but then quit when he suspected this was a lie.

Skinnys owner James McGovern admits not paying staff but strongly denies telling them there was a banking error. He has insisted they will be paid once he receives a private loan.

Mr Richards, 25, from the Gold Coast told Daily Mail Australia: ‘The first issue started in May when one of our paycheques was late. We were told there was a banking error and we would be paid.

‘Two weeks later we went on strike and closed the shop for the day and were then finally paid.’

He said after this happened again staff started quitting and the owner, Mr McGovern, closed the restaurant.  

Several other waiters and kitchen staff told Daily Mail Australia they are also owed thousands for unpaid work – and have contacted the Fair Work Ombudsman for assistance.

Skinnys Bar and Grill in Bondi Beach, Sydney (pictured) shut its doors last month because it wasn't making enough money

Skinnys Bar and Grill in Bondi Beach, Sydney (pictured) shut its doors last month because it wasn’t making enough money

Head chef Elliot Richards said he is owed $3,600 after working five weeks without pay. He explained his situation in a Facebook post (above)

Head chef Elliot Richards said he is owed $3,600 after working five weeks without pay. He explained his situation in a Facebook post (above)

Marketing manager Melita Valvcich said she was contacted by Mr McGovern to run the marketing of another Skinnys restaurant in Penrith, western Sydney.

She said she worked for months before she realised no pay check was coming and quit.

She told Daily Mail Australia: ‘Mr McGovern told me he would pay me as soon as he could but I haven’t received a cent. I’m owed $8,000 for a few months’ work – it’s a lot of money for a small marketing business like mine.

‘I’ve tried to contact him but have heard nothing and he’s deleted me on social media. I feel a bit silly that I was duped. An expensive lesson has been learnt.’

McGovern, 30, from western Sydney, admitted he has been unable to pay staff after his restaurants failed.

He told Daily Mail Australia: ‘The business isn’t trading due to cash flow issues – it’s just an awful situation.

‘I’ve been evicted from my house and my girlfriend and I are living with a friend. I’m not deliberately withholding money from staff.’ 

He said he had barely a cent in his bank account.

Head chef Elliot Richards (pictured) said staff started quitting and the owner, James McGovern, closed the restaurant

Head chef Elliot Richards (pictured) said staff started quitting and the owner, James McGovern, closed the restaurant

‘I’m waiting for a loan and when this comes through I can pay the staff – I understand it’s stressful for them and I feel awful about it,’ he added.

‘My sister has even offered to re-mortgage her house so we can raise the funds to pay staff. She doesn’t have to do that – we could just declare bankruptcy.’

Asked why some staff continued to work without being paid, he said: ‘I have always been transparent with the staff – I held a meeting and explained there were cash flow issues.’

Mr McGovern declined to reveal the total amount he owes staff, saying: ‘I’m not a big co-corporation, I’m a just a guy from western Sydney who runs a few cafes. 

‘Some have succeeded, some have failed. I didn’t see this happening.’

He said he has contacted Ms Valvcich and told her she will be paid.

When a business goes bankrupt, staff can lodge a claim for up to 13 weeks’ unpaid wages via the federal government’s Fair Entitlements Guarantee.

If the business is not declared bankrupt, staff can contact the Fair Work Ombudsman for assistance.

A Fair Work spokesman told Daily Mail Australia: ‘Any worker seeking advice or assistance can contact the Fair Work Ombudsman via www.fairwork.gov.au or via the Fair Work Infoline on 13 13 94. An interpreter service is available by calling 13 14 50.’

The 30-year-old owner, James McGovern, from western Sydney, admitted he has been unable to pay staff after his restaurants failed

The 30-year-old owner, James McGovern, from western Sydney, admitted he has been unable to pay staff after his restaurants failed



Read more at DailyMail.co.uk