Assessment 2: Case Study- Legal Considerations Read the case study and respond to all the assessment tasks below Case study: Yummy Restaurant Yummy Restaurant was a fast-growing restaurant in Fortitude Valley. It was set-up two years ago by Mr. X who is a famous Chef from ABC country. It started as a small family business managed by Mr. X and his wife Mrs. Y. The service was friendly and welcoming and customers loved the food cooked by Mr. X and served by Mrs. Y. A year ago, the restaurant grew from a seating capacity of 20 to a seating capacity of 200. His annual turnover increased from $400,000 to $5 million. Mr. X leased the next-door building in the Valley to cater to the growing number of customers. As the customers kept growing, Mr. X was not able to cook all the food by himself and Mrs. Y was not able to serve all the customers alone. So Mr X put an advertisement outside his restaurant saying- “Waiters and Chefs required. Only females aged below 25 can apply- Enquire within”. A number of young students started applying for jobs. Mr. X felt it was a good opportunity to get staff at a low cost. He started hiring a number of female students on a casual basis. He didn’t want to hire staff with children as he felt that they would not be as flexible as females without children. So he would have a quick chat with them over the counter and ask them if they were married or had children. If he liked them, he would ask them to start working as cooks or wait-staff immediately. He had no time to train his staff or give them written contracts. He would tell them that they were lucky to have a job and he would pay them $200 per week for working 40 hours. While a majority of his staff was employed on a casual basis, he had hired two female staff nearly 18 months ago on a permanent full-time basis. Melanie Gibson was hired as the Head Chef at a base rate of $300 per week, and Anna Cobb was hired at the same time as a Kitchen-hand at a base rate of $250 per week. Both Melanie and Anna were often asked to work up to 60 hours per week at no extra pay. Mr. X’s staff worked very hard, however they were very unhappy because of the long working hours, low wages and lack of job security. As soon as they could find another job, they would leave. Staff turnover was very high. Moreover, if any staff complained about anything, Mr. X dismissed them on the spot. Melanie had recently had an argument with Mr. X and was fired with no notice. The argument started because Mr. X had told all the other staff about how he decided to employ Melanie because she had indicated to him during her interview that she was a sole parent earning only $50 per week. He had told the others that she had a 4-year old child to look after so she would work hard to keep her job. Mr. X felt that there was no problem in giving this information to all the other staff as he was the boss and he could share any information he wanted to with others. Melanie told him that he had no right to reveal her personal details to anyone. Mr. X told her that she had no right to question him and he fired her on the spot. Melanie asked him to give her pay slips for the last 18 months, but Mr X said he was not required to do anything for her. A few days later a 27-year old trained male Chef went to the restaurant and asked Mr. X if there was a vacancy. Mr. X pointed to the advertisement and told him that he did not hire male staff, even if they were as qualified as he was. The gentleman left feeling very disappointed. A month ago Anna asked Mr X, if she could get 5 days leave to go for a holiday with her partner. She had not taken leave since she started working with Mr X. Mr X told her that she could not take leave till the following year as it was not convenient for the restaurant. He said that he was only required to give sick leave, not leave to have fun. Till late last year, the restaurant used to be always booked to capacity. Customers were very happy. However, from the first quarter this year, the revenue has declined by over 20%. The restaurant is now half-empty and business has slowed down considerably. Customers complain of poor service, dirty plates and tasteless food. Mr. X wants to rebuild his reputation. He understands that one of the main reasons for the collapse of his business is his poor human resource management policy. He decides to call a Human Resource Advisor to help him with:• Human Resource planning• Recruitment and Selection• Induction and Training He wants to achieve the following outcomes (goals).1. He wants customers to appreciate the quality of the food at the restaurant2. He wants Yummy Restaurant to become famous for high quality customer service3. He wants to increase his revenue by 30% in the next 6 months4. He wants to retain and recruit good quality staff He appoints you as the Human Resource Advisor to help him achieve his goals. Answer the questions below: 1. Refer to the Anti-Discrimination legislation, Fair Work Act 2009 and the National Employment Standards (NES) and complete the table below to identify 10 areas where Mr X has breached the legal requirements. What has Mr X done that is against the law?Which specific law has he breached?What does the law require him to do?1 2 3 4 5 6 7 8 9 10 2. Describe Yummy Restaurant’s current ’employer brand’ and ’employer value proposition’. (i.e Would you like to work at Yummy Restaurant? Explain why or why not?) 3. List at least FIVE changes you would make to improve the human resource practices at Yummy Restaurant. • • • • 4. Who would you consult with to determine the HR needs of Yummy restaurant? 5.
Write a list of documents that Yummy Restaurant should develop in order to improve their recruitment and selection process. 6. Develop a Recruitment Policy for Yummy Restaurant.
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