iscover Millions owed to ATO as restaurant owner faces workplace law penalties
TaxA Sydney restaurant director disqualified after racking up $4.1 million in tax debts has been ordered to compensate underpaid workers.
Dozens of staff from former World Square Japanese restaurant Miso are owed a share of the $162,514.28 in compensation the Federal Court of Australia ordered against part-owner Katsuyoshi (Ken) Sadamatsu, less any amounts already paid.
It comes just months after the Australian Securities and Investments Commission (ASIC) disqualified Sadamatsu from managing corporations for a period of five years following his involvement in Miso and four other failed companies.
At the time of ASIC’s decision, the companies owed a combined total of $$4,375,875.63 to unsecured creditors, including $4,173,350.93 to the Australian Taxation Office (ATO).
ASIC found Sadamatsu acted improperly and failed to meet his obligations as a director in several respects, including a failure to ensure the five companies met their statutory obligations to the ATO, and a failure to maintain proper records.
Last week, Justice Elizabeth Raper also found Sadamatsu contravened the Fair Work Act 2009 by his failure to pay Saturday, public holiday, overtime, split-shift and annual leave entitlements to employees between mid-2020 and September 2022.
One employee, who is owed approximately $19,000, was at times paid a flat rate of $22 when they should have been paid hourly rates of $32 for overtime, $27 on Saturdays, and $48 for public holidays, according to the Fair Work Ombudsman (FWO).
Sadamatsu also failed to make and keep required employment records for penalty rates, overtime and leave entitlements.
A further penalty will be discussed next February.
The employer, Miso Pty Ltd, was placed into liquidation in 2024, which was shortly followed by the closure of the restaurant.
The FWO discovered the underpayments during an audit.
In a statement to the media earlier this year, the FWO said most of the affected workers were visa holders from a range of countries in Asia, and many were aged between 19 and 24.
The underpayments were described as “completely unacceptable” in circumstances where the FWO formally cautioned Sadamatsu in August 2020 for similar conduct and put him “squarely … on notice” of compliance with workplace laws.
“When we encounter alleged deliberate underpayments of vulnerable migrant workers we will do everything within our power to hold individuals involved in that exploitation to account,” Ombudsman Anna Booth said.
“Employers also need to be aware that taking action to protect migrant workers and young workers, and improve compliance in the fast food, restaurant and café sector, are long-term FWO priorities.”
Citation: Fair Work Ombudsman v Sadamatsu [2026] FCA 1568.
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