Employer guilty of exploiting migrant workers hit with six-figure fine

The Fair Work Ombudsman (FWO) warned employers to stop exploiting their workers following the case of a Brisbane sushi restaurant that was found guilty of underpaying employees and falsifying records, a media release said.

According to the FWO, the Federal Circuit and Family Court imposed a $305,000 penalty against Delishesco Pty Ltd, operating the Moga Izakaya & Sushi in Paddington, and a $50,000 fine against the company’s sole director Yinan Yang, who manages the restaurant.

“The total penalties obtained in the case are the second-highest the FWO has obtained in a Queensland matter and one of the highest the FWO has obtained in a case nationally.”

The FWO said that most of the exploited workers were migrant employees, including Chinese, Japanese, Korean, and Thai visa holders, and some were even young workers between the ages of 19 and 21.

The FWO also found that the underpaid employees were mostly casual and worked as wait staff, cooks, kitchen hands and dishwashers.

The court said that most of these employees were workers on visas who “were vulnerable to exploitation given their unfamiliarity with the English language and the Australian industrial law.” 

Background of the case

The FWO said it began its investigation after one of the underpaid workers contacted it, claiming he was paid only $16 an hour.

It further stated that after a thorough investigation, the inspectors found that 34 employees were underpaid “minimum wage rates, casual loadings, overtime, split-shift allowances, and penalty rates for weekend, public holiday and night work, under the Restaurant Industry Award 2010 and National Employment Standards.” The company’s breach of record-keeping and pay slip laws added up to the misconduct.

“Individual underpayments ranged from $92 to $9588,” the FWO said. “Delishesco back-paid the workers only after the Fair Work Ombudsman commenced legal action.”

Despite FWO’s previous formal warning against the operator, the FWO said that the latter still intentionally underpaid 34 employees a total of $75,716 between December 2018 and March 2019 and consequently provided the Ombudsman’s office with false records during an investigation.

The court said that imposing penalties on the operators was only the way to deter other businesses from such misconduct.

“In this case, the aspect of deterrence looms large. In fact, it might seem that it overshadows almost everything else,” the court said. “The severity and seriousness of what [Delishesco and Mr. Yang] have done cannot be overstated.”

Warning to all employers             

Fair Work Ombudsman Sandra Parker said that the case of the Brisbane sushi restaurant should become a warning that FWO does not turn a blind eye to employers who exploit their workers.

“As the substantial penalties highlights, deliberately exploiting migrant workers and using false records even after the regulator has put you on notice is extremely serious conduct that will not be tolerated,” Parker said.

Parker reminded the public that all Australian workers have the same rights regardless of nationality, visa, or status, which must be respected. “Anyone with concerns about their pay or entitlements should contact us for free assistance,” she said.