The Federal Circuit Court handed down penalties of nearly $200,000 to a Korean manager and part owner of a sushi outlet in Shellharbour for exploiting overseas workers through an unlawful intership program with a college in Busan.
Kjoo Pty Ltd is operator for a sushi outlet Masaki at the Stockland shopping centre.
They paid flat rates of between $12 and $13.50 per hour in cash to their three female staff on working holiday visa under the so-called internship agreement with the Busan Institute of Science and Technology.
The women, who spoke little English were aged 20 and 21 were supposed to received minimum hourly rates ranging from $16.67 to $18.99 as well as casual loadings, and penalty rates ranging from $23 to $47 an hour.
Overall, the three young working holiday makers were underpaid a total of $51,025 at the Masaki sushi outlet between September 2014 and July 2015.
Judge Dowdy found that Kwon knew the workers were entitled to be paid according to the Award and should have received but there was a “deliberate, intentional and informed decision by Kjoo, through Mr Kwon, to underpay the employees to gain a financial advantage for its business”.
Therefore the Federal Circuit Court handed down penalties of $161,760 against Kjoo Pty Ltd and Kjoo manager and part owner Hyo Jun “John” Kwon was penalised $32,352.
Furthermore, Kjoo’s accountant Ok Gyu Lim, director of accountancy firm Hanlim, was also penalised $4608 for his intentional involvement in preparing false records that were submitted to the Fair Work Ombudsman during its investigation.
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