Indian restaurant in Sydney in court over alleged compensation breach

Restaurant operator who owns Amritsari Dhaba is facing legal action for allegedly ignoring a Fair Work Commission order to compensate an employee who had been unfairly dismissed.

indian restaurant fined

Sydney-based Indian restaurant faces court for alleged compensation breach Source: Pixabay

The Fair Work Ombudsman (FWO) has commenced legal proceedings against Dharma Reddy Gummi and his company, Indian Food Catering Pty Ltd in the Federal Circuit Court.

The regulator has alleged that the company which operates Amritsari Dhaba in Doonside, in western Sydney failed to pay compensation to its cook who had been wrongfully dismissed through email in March 2018.

As a result, the Fair Work Commission ordered the company to pay $18,000 excluding tax in compensation to the sacked employee, through six instalments each month between September 2018 and February this year.
But FWO claims that the company has failed to comply with the order and have paid a sum of only $3,750 of the outstanding compensation.

The sacked worker who had started working at the restaurant in 2016 is an Indian national on a 457 skilled visa. He was on a bridging visa at the time of the dismissal.

Fair Work Ombudsman Sandra Parker said the action was necessary to reinforce the significance of the Commission’s orders.

“It is fundamental for the integrity of the workplace relations system that orders are complied with, and we will take legal action to ensure employees receive compensation,” Ms Parker said.

The FWO is seeking a court order for the company and its owner to pay the compensation owed to the employee including interest and an order for legal costs.

Mr Ghummi faces a maximum penalty of $12,600 and his company of up to $63,000.
In 2017-18, one-third of legal proceedings initiated by the Ombudsman involved businesses in the fast food, restaurants and café sector.

“We expect employers operating a restaurant, café or fast food outlet to comply with workplace laws and orders, and will continue to take legal action where that does not occur,” said Ms Parker.

Employers and employees can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94 for free advice and assistance about their rights and obligations in the workplace.  A free interpreter service is also available on 13 14 50.

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By Avneet Arora

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