The operators of a Brisbane cafe allegedly paid some of its employees in food and drink, according to the Fair Work Ombudsman.

Key points: Workers at a suburban business, Cafe 63 Chermside, allegedly received some of their payment in food and drink

Workers at a suburban business, Cafe 63 Chermside, allegedly received some of their payment in food and drink FWO will argue this breaches the Fair Work Act, which requires staff to be paid money

FWO will argue this breaches the Fair Work Act, which requires staff to be paid money Some of the most vulnerable workers are in the fast food, restaurant and cafe sector

Visa holders — including junior workers aged under 21 — were partly paid in meals, desserts and drinks over two periods between August 2017 and January 2018, the ombudsman will allege in the Federal Circuit Court.

Eleven employees from Cafe 63 Chermside, at the Westfield Chermside shopping centre in suburban Brisbane, were allegedly underpaid by Timi Trading Pty Ltd.

They worked as cooks, kitchen attendants and food and beverage attendants.

Company director Tien Hoang Le, company manager Minh Vo Duy Nguyen and company owner-director Hamish Watson are scheduled to face a directions hearing in Brisbane on February 21.

Fair Work Ombudsman Sandra Parker said her inspectors looked into the small business after hearing allegations of underpayment.

"All employees in Australia are entitled to be paid the minimum pay rates that apply to their positions — in money, not food," Ms Parker said.

"Businesses should be aware that we are cracking down on the underpayment of vulnerable workers in the fast food, restaurant and cafe sector as a priority."

The Fair Work Ombudsman's annual report has revealed that $40 million in stolen or lost wages was recovered for 18,000 workers in the year to June 30, 2019.

Fair Work Ombudsman Sandra Parker. ( Supplied: FairWork )

More than half of the litigations it filed were against businesses in the fast food, restaurants and cafe sectors — with more than $1.6 million in penalties secured against employers in those sectors.

The FWO will allege that by paying workers in food and drink, instead of money, the operators of Timi Trading breached the Fair Work Act.

Inspectors allegedly found that eight of the 11 employees were paid according to Individual Flexibility Agreements (IFA), which provides for flat hourly rates, bonuses and allowances.

It will argue that the workers should have been provided with entitlements under the Restaurant Industry Award, including overtime and penalty rates.

Under the IFA, allowances allegedly used by Timi Trading, employees were allowed food and drink worth $42 per day.

That included $20 in meals, $7 in desserts and $15 in drinks.

Timi Trading is also accused of providing inspectors with false and misleading records and failing to pay one employee for taking leave on a public holiday.

If the allegations are proven, Timi Trading faces maximum penalties of $63,000 per breach, while the directors and operators face maximum penalties of up to $12,600 for every contravention.