The operators of Mamak Malaysian restaurant on Goulburn Street Haymarket have been penalised almost $300,000 for deliberately short-changing their employees and using false records to try to disguise the underpayments.
The Fair Work Ombudsman took legal action after an investigation revealed that six employees – five of them visa-holders at the time from non-English speaking backgrounds – were collectively underpaid more than $87,000 when they received as little as $11 an hour between February, 2012 and April, 2015.
Restaurant owner-operators Joon Hoe Lee, Julian Lee and Alan Wing-Keung Au have been penalised $36,992, $35,360 and $35,360 respectively.
Their company Mamak Pty Ltd has been penalised a further $184,960.
Federal Circuit Court Judge Justin Smith said the penalties should deter other employers from similar conduct.
Handing down the penalties this morning, Judge Smith found that the Mamak Malaysian restaurant had deliberately ignored its workplace obligations “in order to maximise profit”.
“That approach, of course, was taken at the cost of the employees, who, in reality, funded the success of the business,” Judge Smith said at the conclusion of legal proceedings initiated by the Fair Work Ombudsman.
He found that the underpayments stemmed from informal market research by the restaurant operators to see what other restaurants were paying their staff.
Fair Work Ombudsman Natalie James says she is focussed on ensuring the Agency does more to ensure culturally and linguistically diverse business operators understand and comply with Australian workplace laws.
“It is not okay for employers to arbitrarily determine low, flat rates of pay,” Ms James said.
“Researching ‘black market’ wage rates in an industry is not the way to determine how to pay your staff.
“Minimum wage rates apply to everyone in Australia – including visa-holders – and they are not negotiable.
Employers who are concerned that they are not meeting their workplace obligations can visit www.fairwork.gov.au or phone the Fair Work Infoline on 13 13 94.
An interpreter service is available by calling 13 14 50.
