Legal action launched Mr Viet operators Viet Quoc Mai and Huong Le over alleged staff underpayment, punishments

The operators of two CBD eateries are facing serious allegations they underpaid staff by more than $400,000, unlawfully garnished wages and forced them to buy them food.

The husband-and-wife operators of two Vietnamese eateries in the Adelaide CBD are facing legal action for allegedly underpaying workers by more than $400,000.

The Fair Work Ombudsman alleges the operators of two Mr Viet eateries underpaid staff – including Vietnamese international students – deducted wages and ran a strike system as a form of punishment that required them to buy food for staff.

One allegation is that wages were deducted when a fridge door was left open over a weekend.

Viet Quoc Mai, operating as a trustee for the Viet Quoc Mai Family Trust, currently operates two ‘Mr Viet’ eateries in the city – one in Rundle Mall and another in the Market Plaza Food Court in Chinatown – and his wife Huong Le, a manager at the businesses, are facing the Federal Court.

The Mr Viet eatery in Rundle Mall, where the operators are facing legal action from the Fair Work Ombudsman. Picture: Keryn Stevens

The couple is alleged to have underpaid 36 workers – primarily Vietnamese international students under the age of 25, some as young as 18 – a total of $407,546 from January 2018 and September 2021.

Individual alleged underpayments range from $74 to $58,592, with 15 employees being allegedly underpaid more than $10,000.

Staff involved in the alleged underpayment were employed on a casual basis as kitchen attendant, customer service, bar and waitstaff roles.

It is alleged wages were paid using two different hourly rates – a variable flat hourly rate paid directly to the workers bank accounts, between $16 and $26.90, and a flat hourly rate of $15 cash-in-hand.

The Ombudsman alleges Mr Viet added up the number of hours an employee worked in the fortnight and would pay some hours using the bank transfer rate, and then pay the worker cash for the remaining hours in the pay period.

As a result, workers were variously allegedly underpaid minimum wages, casual loading, and penalties for working weekend, public holidays and overtime, and were not paid entitlements owed when meal breaks were not provided.

About 70 per cent of the alleged underpayments sum related to minimum wages and casual loading.

Mr Viet allegedly also made unlawful deductions from workers’ wages for costs associated with leaving a fridge open over the weekend, breaking a door and incorrectly charging a customer and the couple subjected the workers to a ‘strike’ system as punishment for making errors.

Once a worker had six ‘strikes’ against their name they were unlawfully required to buy food and/or beverages for Mr Viet, Ms Le and any staff working at the time.

Mr Viet’s food court outlet in the Chinatown precinct at the Central Markets. Picture: Keryn Stevens

Fair Work inspectors discovered the underpayments when auditing the eateries as part of surprise inspections of restaurants, cafes and fast food outlets in Adelaide in April 2021.

During these audits, inspectors allegedly discovered widespread underpayment at the two venues of entitlements under numerous Acts.

The Ombudsman alleges Mr Viet failed to provide pay slips to affected workers, failed to make certain records, and knowingly made false or misleading records and provided these to workers.

It is also alleged Mr Viet provided inspectors with almost 100 pay slips that all failed to show the cash payments. Some allegedly showed workers had been paid higher rates and worked less hours, which was not the case.

Following the inspectors’ site visit, Mr Viet also allegedly instructed workers to lie to inspectors and delete evidence.

Ms Le is alleged to be involved in a number of Mr Viet’s contraventions of workplace laws, some serious.

The Mr Viet outlet at Chinatown in the Central Market. Picture: Keryn Stevens

It is alleged Mr Viet’s knowledge he was contravening the provisions was part of a “systematic pattern of conduct” that multiple breaches meet the definition of “serious contraventions” under the Fair Work Act – which attract ten times the maximum penalties, up to $133,200 for an individual, per contravention in some instances.

Fair Work Ombudsman Anna Booth said the litigation highlighted that any individuals or companies who allegedly commit serious contraventions would be found out and called out.

“The alleged systemic pattern and deliberate nature of the underpayments, providing of false records to frustrate an investigation, and the significant number of breaches in this matter are alarming,” Ms Booth said.

Fair Work Ombudsman Anna Booth said the litigation highlights that serious contraventions will be found and called out.

“Employers who allegedly exploit their workers and attempt to mislead inspectors will be found out and risk facing significant penalties.

“Employers should also be aware that taking action to protect vulnerable workers and improving compliance in the fast food, restaurant and cafe sector are top priorities for the Fair Work Ombudsman … we treat cases involving the underpayment of migrant and young workers particularly seriously.”

The Fair Work Ombudsman is seeking penalties against Mr Viet and Ms Le up to $133,200 per alleged serious contravention and $13,320 per other alleged contravention.

The Ombudsman is also seeking a court order requiring Mr Viet to rectify the underpayments, the majority of which allegedly remain unpaid more than two years after they were owed.

Ms Booth said any employees with concerns about pay or entitlements should contact the Fair Work Ombudsman and advice was available in their own language.

A directions hearing date in the Federal Court in Adelaide is still to be fixed.

Originally published as Legal action launched Mr Viet operators Viet Quoc Mai and Huong Le over alleged staff underpayment, punishments