Hospitality behemoth Merivale has appointed a top human rights lawyer to investigate any allegations female staff at the exclusive Level 6 club were exploited.
The hire was prompted by Nine newspapers’ report on Tuesday that detailed allegations from multiple employees that the Level 6 penthouse – part of Merivale’s Ivy complex in Sydney – had a “toxic environment that exploited women, encouraged them to have sex with customers, perpetuated sexual harassment and facilitated frequent drug use”.
One manager reportedly described it as “one step away from being a brothel”.
Merivale said it “categorically rejects” the picture painted by the Nine newspapers of a company running an exclusive club that hired young women too afraid or awed by its scale and influence to complain.
In the statement, Merivale said “incidents occur involving both patrons and staff” in all hospitality businesses.
“There is no denying this, However, Merivale handles complaints that are made about such incidents in accordance with its policies and procedures as well as its legal obligations,” the statement said.
The company said the reported alleged incidents were “largely historical and date back as far as 2011”, and were unable to be properly investigated due to “limited information” provided.
It said it had “no records of these allegations”, but added: “If any of these allegations are even remotely true, we sincerely regret any distress caused.”
In a statement, the company said it had appointed Kate Eastman SC “to receive any further information from anyone on these allegations to enable her to conduct an independent investigation of any complaints made to her”.
The company encouraged anyone with information to contact Eastman via direct email, with the option of anonymity “if required”.
“Any particular information that she is requested to keep confidential will be kept confidential.”
Merivale’s statement pointed out that it had employed 50,000 staff over more than 30 years, with 5,000 staff currently in more than 70 venues in NSW and Victoria. It said it had “clear protocols for managing and investigating incidents”, regularly reinforced to staff that there were no repercussions for speaking up and that it had “created an inclusive, diverse and respectful workplace environment”.
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“The allegations put to us by the [Sydney Morning Herald] in no way reflect the fair and respectful culture we strive for,” it said, supplying a list of workplace policies and training programs it had put in place, “many since 2011”.
The Merivale website describes the George Street penthouse as a “perfect private oasis” with “an elegantly-styled rooftop location overlooking Pool Club, with a spa, custom-built bar and balcony surrounded by lush tropical planting”.
The Nine newspapers described allegations of “glamorous” staff serving wealthy male customers and being “repeatedly asked to accommodate their advances” with one former staff member saying it “was like a strip club with no one taking off their clothes”. There was a alleged system to alert staff if police were present so they could hide “whatever was going on”.
Staff also alleged specific instances of sexual assaults and harassment and a culture that percolated through the rest of Merivale’s venues.
