Korean workers underpaid $161,000, Fair Work Ombudsman finds

Fair Work Ombudsman finds 71 per cent of 151 businesses were breaching federal workplace laws.

Fair Work ombudsman Sandra Parker. Picture: Aaron Francis/The Australian

A national investigation into 51 restaurants, cafés and fast food outlets employing Korean workers has found 284 staff were underpaid $161,551, with over two-thirds of the employers breaching federal workplace laws.

Fair Work Ombudsman inspectors uncovered the unpaid wages after investigating food businesses in Sydney, Melbourne, Brisbane, Canberra and Perth between August and December in 2019.

More than one-third of the underpayments occurred at one Melbourne restaurant.

The audits were launched because previous investigations had raised concerns about the exploitation of workers from Korea, including students. Young, migrant employees also provided intelligence to the ombudsman.

The regulator found 36 of the 51 outlets – 71 per cent – were non-compliant with workplace laws.

Sixty one per cent underpaid employees and 75 per cent did not meet pay slip and record-keeping obligations.

The most common breaches were the underpayment of penalty rates, with 26 per cent failing to pay penalties, and 22 per cent not issuing pay slips.

In response to the breaches, inspectors issued 20 compliance notices requiring employers to rectify breaches of the law, resulting in the full back-payments of $161,551.

There were 34 infringement notices – total penalties of $39,480 – for pay slip and record-keeping breaches, and two formal cautions.

Korean migrants made up a significant number of the affected employees, particularly student visa holders. Migrant workers from a range of other countries were also impacted.

Fair Work Ombudsman Sandra Parker said the underpayment of migrant workers, including young students, was unacceptable.

“Australian workplace laws protect all workers, regardless of nationality or age. As this investigation shows, the Fair Work Ombudsman prioritises matters involving migrant workers, who may be particularly vulnerable due to visa status and have limited knowledge of their rights,” Ms Parker said.

“While this investigation commenced prior to the pandemic, the FWO continues to enforce workplace laws in the food sector as a priority. We do so in a proportionate manner, knowing that COVID-19 has had a significant impact on many businesses in the fast food, restaurant and café sector.”

Total recoveries were $95,984 for 65 workers at five Melbourne businesses; $31,376 for 139 workers at six Brisbane businesses; $22,827 for 31 workers at four Sydney businesses; $8,259 for 24 workers at three Canberra businesses; and $3,105 for 24 workers from four Perth outlets.

Recoveries from individual businesses ranged from $18 for four employees in a Perth business to $56,688 for 11 employees of a Melbourne business.