Legal battle between café owner and staff

A Melbourne café owner is threatening to sue staff who claim they have been underpaid

Current and former staff at the Barry Café in Northcote claim they were underpaid by $5 an hour.

They told the ABC that when they complained to the cafe's owners, some workers had their shifts cancelled.

Fair Work Ombudsman has confirmed it is now investigating those claims.

But in an email sent to a 20 year old staff member Anna Langford, the cafe's co-owner Steve Petroulias promised he reimburse unpaid wages.

However, he also threatened legal action against the 20-year-old.

"Hi Anna,

I just wanted to advise you that as you will see in your payslip tomorrow or Friday (because of the holiday) I have already adjusted the wage rate to the correct award rate.

Any moneys owed to you will be paid in full according to the law.

However if the harassment continues to hurt and devalue our business each one of you Will be sued individually and collectively.

Steve"

Ms Langford said she was taken aback by the threat.

"We thought that after the protest they would finally start to work with us," Ms Langford told the ABC.

"I can't think what they would be wanting to sue us for. They use the word 'harassment'.

"But I can't see how us telling the truth is harassment, when they refused to work with us for so long."

Cafe co-owner Anne Petroulias said she and her brother Steve were told weekend penalty rates could be traded off for staff meals when they opened the Barry, their first café.

"We had no idea about wage rates or anything. My brother looked on Google, and got the wage rates. I know we did wrong and we want to rectify anything," she told the ABC.

"The value of our business is really gone to zero. We paid a lot of money to come here a year and a half ago and it's all borrowed money. We are going to lose our house because of that. We don't know what to do. It's really difficult for us."

Leon Getler 1st May 2018.