This article discusses the topics of sexual harassment and assault. If this is causing problems for you or someone you know, please see the list of support resources at the end of the article.

Today the Sydney Morning Herald published a the Merivale investigationthe Sydney-centric hospitality group, which operates more than 70 restaurants, bars and pubs on the east coast.

Journalists Eryk Bagshaw and Bianca Hrovat spoke to four former employees at Level 6, Merivale’s members-only penthouse in the Ivy precinct, who claim the workplace exploited young women and encouraged staff to take part in drug use and sex with guests. A manager at Merivale claims the place is “one step away from being a brothel”.

A former staff member, speaking of the group as a whole, said SMH: “They hire very, very young people. There are thousands of girls between the ages of 18 and 21 who are young, naïve and absorbed by Merivale.”

Apparently access to Level 6 costs $10,000 per year. Staff pour champagne and choose cigars, while a stripper pole sits in the middle of a sunken lounge area. There is a spa and terrace, as well as a double shower and a private bar. Apparently the CCTV only captures the poker table and the bar.

Allegations from former Level 6 hosts include pressure to drink with Merivale managers who were “drunks and alcoholics” and difficulty saying no when situations arose. “It was like a strip club where no one takes their clothes off,” claims one, while another says he was “flirty”, “affectionate” and “hands on”. A level 6 host claims a “manager” threw her on the couch and reached up her skirt. In a separate incident, a manager allegedly asked a hostess “Why have we never dated?”

A spokesperson for the group responded to the allegations in a statement on Tuesday, October 29: “Merivale categorically denies the allegations made regarding the alleged practices imposed on employees at Level 6 or others, and any other Merivale location. All Merivale employees, including those at Level 6, are treated with respect. The allegations made are completely contrary to our culture as well as our policies and procedures.

“In all hospitality businesses, including Merivale, incidents occur involving both patrons and staff. This cannot be denied. However, Merivale handles complaints that are made about such incidents in accordance with its policies and procedures, as well as its legal obligations.”

“Most incidents alleged by Sydney Morning Herald (SMH) are largely historical and date back to 2011. Merivale takes these allegations of misconduct extremely seriously. Our approach was to request sufficient details from Sydney Morning Herald to be able to fully investigate them including providing us with the names of the alleged perpetrators. That was not provided to us.”

A separate space with the same layout as level 6 is reported to function as a “private party area for the Merivale manager and special guests”. There are allegations of people having sex, in the shower or on the sofa, when staff arrive to take or leave food and drink orders. Merivale has stated that it has no record of these allegations.

While the alleged behaviors are reported to have been initiated and actively promoted at Level 6, there are reports that they have trickled down through the rest of the Ivy Precinct. At Felix, a downstairs French restaurant, a regular claims he was offered drugs by a “Merivale manager’s dealer”. The dealer was apparently joined by two hosts, one spending part of the table sitting on his lap. “You know it happens on level 5 behind closed doors,” said the regular. “I think everyone always knew it was a boys’ club, but it’s trickling down to all these other locations.” Merivale states that it is “proven false” that it operates a club for boys.

Kitchen teams ‘joke’ about the age of women who dine with male managers. “They found another 20-year-old,” said a cook. “It was something that was joked about more than anything between the men in my kitchen.” Former employees claim that the young women were pulled from the queues for special treatment. Staff claim they are “terrified” of the group’s leaders.

“(We) regularly reinforce to our people that there are no repercussions for speaking up about behavior in the workplace,” the group states. Merivale denies “allegations that any Merivale employee screens restaurants and bars to select patrons to join private parties hosted by older men or for any other purpose.”

The Merivale managers told him SMH they knew of six CCTV blind spots in the Ivy premises where they say they could have people being beaten by security, having sex and taking drugs. Merivale states it is “simply untrue” that CCTV blind spots exist.

In response to HeraldFollowing his investigation, Merivale set up a staff complaints hotline and appointed Kate Eastman SC, a leading human rights and discrimination lawyer, to independently investigate the allegations. “We encourage those with information about the allegations to contact Ms Eastman SC via direct email, which can be made anonymous if necessary.”

Merivale is one of Australia’s leading hospitality groups, with bars, restaurants, pubs and clubs covering a wide range of styles and locations. There are 81 locations listed on the Merivale website, 77 of which are in NSW.

“Due to its extensive portfolio of locations and significant employee base, Merivale is one of the most controlled and regulated hospitality companies in New South Wales,” the group’s statement continued. “The operational management of the venue is governed by mandatory regulatory approved Management Plans which have been approved by NSW Police, Liquor & Gaming NSW and the Local Government (Council). Strict and properly enforced regulatory protocols, regulations and laws apply to all licensed locations, including regular site audits, inspections and reviews.

“We reiterate that we have extensive and rigorous training and systems in place to ensure a safe working environment for our team and guests… There is no measure by which we can reasonably be described as a rogue hospitality operator given the procedures , policies and protocols in place to ensure safe operations for our employees and our guests.”

Safe Work NSW is currently investigating the allegations against Merivale.

If you have been a victim of sexual harassment in a hotel workplace or witnessed an incident, read activist Jamie Bucirde’s advice for navigating the situation.

If you would like to speak to someone about an experience you have had or would like more information, please call 1800Respect on 1800 737 732 or visit 1800respect.org.au.

You can also alert Broadsheet to misconduct of any kind in the hospitality industry via [email protected]. We can’t act on specific advice, but your valuable information can inform future coverage.