Are you correctly paying your employees?
The Fair Work Ombudsman has recovered over $802,000 in court-ordered penalties and compensation after the operators of two Vietnamese restaurants in Adelaide — run by a husband and wife — were found to have underpaid migrant workers, including forcing them to purchase bubble tea for their bosses.
The Federal Court ordered the owner to repay $407,546 in wages, interest, and superannuation to 36 underpaid employees who worked at a ‘Mr Viet’ restaurant in Rundle Mall and a food court outlet in Adelaide’s Chinatown.
In addition to the repayment order, the owner was fined $265,000, while his wife, who managed the businesses, was fined $130,000 for her role in the breaches.
The penalties were issued for multiple violations, including providing false records to Fair Work Inspectors, failing to pay minimum wages, penalty rates for weekends and public holidays, and overtime. Other breaches included failing to provide meal breaks and requiring employees to spend their own money for work-related expenses.
The Court found that several of the owner’s breaches – including non-payment and underpayment of rates and loadings, and making and keeping false and misleading records were serious contraventions under the Protecting Vulnerable Workers laws. This attracted a tenfold increase in maximum available penalties, because they were committed deliberately and systematically.
Fair Work Inspectors discovered the underpayments when auditing the eateries as part of surprise inspections of restaurants, cafés, and fast food outlets in Adelaide’s Chinatown precinct in 2021. Those inspections recovered wages for more than 300 underpaid workers.
The FWO is prioritising ensuring compliance across many industries, including the fast food and restaurant sectors, and also industries where vulnerable workers, including migrant workers, are employed.
This underscores the importance of employers across all industries complying with wage laws, including penalty rates, which are typically intended to compensate employees working during unconventional hours. Employers who violate these laws are being identified and held accountable.
Also, from 1 January 2025, if an employer intentionally underpays an employee, they can be subject to criminal prosecution.
We are here to help
Here at the South Australian Business Chamber (SABC), we deal with thousands of businesses who are attempting to do the right thing and pay their staff correctly; however, we know that industrial relations is complex and at times, unintentional mistakes may result in an underpayment. If you are unsure or think it might be time to check what you are paying, our team of Consultants is expert in industrial relations and can work with you to conduct a compliance audit.
Our team of Workplace Advisors is also on standby to provide Members with advice on rates of pay, record-keeping requirements, Modern Award classifications, and more.
For workplace advice, contact our Business Advice Hotline on (08) 8300 0000 (select option 1) or register your online enquiry here.
You can join us for our FREE webinar on Are you prepared for the Annual Wage Review? – Two dates to choose from in June 2025
