Alleged employment transfer
The cafe, known as Greenwich Deli, changed ownership in September 2024 when it was purchased by a 22-year-old business investor with limited hospitality experience. The worker had been employed as head chef by the previous owner (Tasty Trading Pty Ltd) since November 2022 and continued working when the new owner (AJL Industries Pty Ltd) took over.
Shortly after the change of ownership, the worker was promoted from head chef to cafe manager with a significant salary increase from $77,064 to $84,968 per year plus superannuation. According to the worker, he was the only full-time employee, supported by five casual staff members.
The worker testified that since there was no assistant manager or sous chef, he was responsible for the entire business including front of house, kitchen and overall management. This expanded role meant he effectively took on the operational responsibilities previously handled by the former owner.
Financial challenges led to restructuring
By late November 2024, the cafe was facing severe financial difficulties. Evidence showed the business had lost approximately $40,000—far more than the $10,000 the worker had anticipated.
The employer blamed these losses on the worker’s management decisions. The FWC noted that “[the worker’s] idea for burger nights each Thursday, Friday and Saturday together with 7-day trading where excessive staff numbers were rostered on the quietest days, all contributed to major financial losses.”
