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Landmark fine imposed for underpaying staff and falsifying records.
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FWO secures $355k in penalties against Brisbane sushi restaurant
07 July 2022
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9 minute read
The Fair Work Ombudsman has secured a total of $355,000 in penalties at court against the operators of a Brisbane sushi restaurant after they deliberately underpaid employees and falsified pay records.
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The Federal Circuit and Family Court imposed a $305,000 penalty against Delishesco Pty Ltd, which operates Moga Izakaya & Sushi in Brisbane, as well as a $50,000 penalty against the company’s sole director, Yinan Yang.
The penalties, some of the highest secured by the FWO, were imposed after the court deemed that Delishesco and Mr Yang knowingly underpaid the employees and that their conduct was part of a systematic pattern of behaviour.
Judge Salvatore Vasta found that the matter involved deliberate and systematic underpayment of vulnerable workers and determined that serious penalties were required to be imposed to deter others from the conduct.
“The severity and seriousness of what (Delishesco and Mr Yang) have done cannot be overstated,” said Judge Vasta.
“Most of these employees are workers on visas who are apt to being exploited because of their unfamiliarity with the English language and Australian industrial law.”
Fair Work inspectors investigated the business after one of the underpaid workers contacted the FWO to allege he was being paid just $16 an hour.
Despite previously being formally cautioned by the regulator for underpaying staff, the FWO found Delishesco had deliberately underpaid 34 employees a total of $75,716, ranging from $92 to $9,588.
The inspectors found the employees affected were underpaid a variety of minimum wage rates, casual loadings, overtime, split-shift allowances and penalty rates for weekend, public holidays and night work between December 2018 and March 2019.
They also found Delishesco had breached record-keeping and payslip laws and provided FWO inspectors with false records during the investigation.
The majority of the workers involved were Chinese, Japanese, Korean or Thai visa holders with limited English, some aged between 19 and 21.
Fair Work Ombudsman Sandra Parker said that the case showed that the regulator will use all available powers to ensure those who consciously exploit workers are held to account.
“As the substantial penalties highlight, 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,” said Ms Parker.
“All workers in Australia have the same rights, regardless of nationality and visa status, and those rights must be respected.”
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