iscoverThe Fair Work Ombudsman has launched legal action against a Sydney-based accounting firm following allegations it required a migrant worker to fund her own wages.
Accountant forced to fund her own wages in ‘blatant’ exploitation, FWO alleges
01 August 2025
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7 minute read
Accounting firm Innovative Associates faces court following allegations that it required a part-time assistant accountant to fund her own wages in an unlawful “cash-back” scheme.
The Fair Work Ombudsman alleged that Innovative Associates failed to pay the Nepalese national any wages during her first 10 weeks of employment at the firm.
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After that, she was allegedly required to pay the company amounts sufficient to cover her own wages, superannuation contributions and tax.
The Fair Work Ombudsman called the scheme a “blatant and appalling” form of exploitation.
“We will be alleging in court that this company implemented a cashback scheme to try to give the impression that it was complying with its legal wage obligations, when it in fact was exploiting a vulnerable migrant worker for its own gain,” Fair Work Ombudsman Anna Booth said.
“For more than a year’s work, we allege the worker got to keep no wages and instead had to pay even more than she received.”
The assistant accountant was required to pay the firm a total of $32,907 from October 2019 to December 2020, $27,873 of which was returned to her in the form of wages, the FWO alleged.
The company also allegedly failed to pay her for public holiday work and annual leave entitlements at the end of her employment.
The company and its sole director, Dila Ram Kharel, face penalties of up to $66,000 and $13,320 per contravention, respectively.
The Fair Work Ombudsman is seeking penalties against the company and Kharel for the alleged cash-back contravention, breach of record-keeping and payslip laws, and failure to pay the employee annual leave entitlements.
Innovative Associates also paid the worker back the full $40,164.49 that she had been allegedly underpaid during her time at the firm.
The investigation came after the worker lodged a request for assistance with the FWO. The ombudsman urged workers to come forward if they believed they were being exploited, regardless of their visa status.
“All employees in Australia are entitled to receive – and keep – the minimum lawful entitlements that apply to their employment position, regardless of their visa status. Protections exist for any visas of those who call out exploitation,” Booth said.
“We urge visa holders and other employees with concerns about their pay or entitlements to contact the Fair Work Ombudsman for free advice and assistance.”
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