Restaurants fined $209,000 for underpaid migrant workers

A Melbourne restaurateur, his two companies and in-house accountant have been penalised for paying as little as $10 an hour.

Employees were paid flat hourly rates of between $10 and $23.33. Some worked six or seven days a week, and more than 10 hours per day.

A Melbourne restaurateur, his two companies and in-house accountant have been penalised $209,000 for ripping off and exploiting vulnerable migrant workers by unlawfully paying them as little as $10 an hour.

The employees, mostly overseas workers on working holiday and student visas, were underpaid while working at Tina’s Noodle Kitchen in Box Hill and Dainty Sichuan on Swanston Street in the Melbourne central business district.

Employees were paid flat hourly rates of between $10 and $23.33 in breach of the Restaurant Industry award. Some worked six or seven days a week, and more than 10 hours per day.

During an audit in June 2016, Fair Work Ombudsman inspectors found that 30 employees across the two restaurants had been underpaid a total of $30,995.

Inspectors found that 17 employees at Dainty Sichuan were underpaid $18,190 and 13 employees at Tina’s Noodle Kitchen were underpaid $12,805.

The Federal Circuit Court ordered Ye Shao to pay penalties of $15,000 and his companies Wynn Sichuan Pty Ltd and Nine Dragons Pty Ltd to pay $95,000 and $88,000, respectively.

The companies’ in-house accountant Yizhu “Jessica” Ding admitted to being an accessory to the underpayment and record-keeping contraventions, and were penalised $11,000.

The court accepted the respondents failed to pay minimum wages; overtime; penalty rates for weekends and public holidays; and to keep records and provide pay slips.

Judge Grant Riethmuller said a “large proportion” of the restaurant staff were visa holders who spoke Mandarin as their primary language.

“Employees with these backgrounds are in a particularly vulnerable position, and that is a factor to which I give significant weight,” he said.

Fair Work Ombudsman Sandra Parker said the underpayments were rectified before the proceedings began.

“The exploitation of migrant workers is unacceptable as they can be particularly vulnerable in the workplace due to language barriers or visa status. Minimum wage rates apply to everyone in Australia, including visa-holders, and they are not negotiable,” Ms Parker said.

“This outcome should serve as a warning to all employers to pay their workers correctly. We encourage any employees with concerns about their pay or entitlements to speak up and contact the Fair Work Ombudsman.”