Western Sydney worker underpayment 'predatory': advocacy group

The Fair Work Ombudsman has found dozens of western Sydney businesses have been underpaying workers.

Hundreds of thousands of dollars have been recouped from businesses in Western Sydney which were discovered to be underpaying their workers. Source: AAP

Hundreds of thousands of dollars have been recouped from businesses in western Sydney after they were found to be underpaying their workers.

The Fair Work Ombudsman launched the review of 197 businesses, mainly restaurants, after receiving tip-offs.

The investigation found 42 per cent of surveyed businesses were underpaying their workers.

All up, more than $360,000 dollars in unpaid wages and entitlements was recovered for 199 workers.

The audit focused on western Sydney suburbs including Parramatta, Harris Park, Fairfield, Cabramatta and Mt Druitt.

The suburbs have a high migrant population, leading to concerns workers from culturally diverse backgrounds are being exploited.

Tim Lo Surdo from advocacy group Democracy in Colour said the underpayment was 'predatory behaviour'.

“We’ve got a situation where businesses are exploiting (workers’) vulnerability,” he told SBS News.

“These are the communities that are often less best equipped to deal with these things - they either have language difficulties or they have a lack of familiarity with workplace laws, or they don't have a strong sense of their own ability to contest injustice in the workplace.”

Fair Work Ombudsman Natalie James said there was no excuse for underpaying workers.

Fair Work Ombudsman Natalie James Source: AAP

“It is outrageous to think that you can underpay workers because their English isn't very good or they're on a visa. That's unacceptable and we won't tolerate it.”

Small Business Minister Craig Laundy said he would convene information sessions in the region to educate businesses on their legal obligations.

“A business owner, irrespective of what language they speak, or what country they come from has a legal obligation under Australian law to pay their worker the right amount of money,” he said.

“The fact that migrants coming to Australia have the guts to have a go is fantastic, however, we need to make sure in doing so, they look after their workers as per Australian laws.”