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Sister and brother-in-law were short-changed $175,000 over four years, court found.
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Restaurant couple fined $70k for underpaying relatives
22 November 2023
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Hobart husband-and-wife restauranteurs have been fined almost $70,000 for underpaying two relatives a total of $175,000 over four years.
The Federal Court also found the couple, Ms Xuan A Tran and her husband Mr Quang Manh Dong, falsified records and breached payslip laws.
The couple, who run Vina Yummy Kitchen as a partnership in Sandy Bay, acted as visa sponsors for Ms Xuan Tran’s sister and brother-in-law and assisted them in moving to Australia from Vietnam.
But Fair Work inspectors began investigating after the workers lodged requests for assistance.
The court heard Ms Xuan Tran provided Fair Work inspectors with false records during their investigation while both she and Mr Dong also breached record-keeping and pay slip laws.
The Fair Work Ombudsman (FWO) determined that the workers were underpaid minimum rates for ordinary hours, public holiday and overtime rates and leave entitlements under the Restaurant Industry Award 2010 and the National Employment Standards under the Fair Work Act.
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The couple eventually admitted underpaying two employees – Ms Xuan Tran’s sister and her sister’s husband, both Vietnamese nationals – a total of $175,000 between 2015 and 2019.
This included Ms Xuan Tran’s sister being underpaid $18,683.69 and the sister’s husband being underpaid $156,316.31.
They back paid their relatives in full only after the FWO commenced legal action.
Judge Sandra Taglieri found that there was a need to impose penalties to deter other employers from similar conduct, “especially given the high-risk nature of contraventions of the awards and act relating to minimum standards in the cafes, restaurants and takeaway foods industry.”
Ms Xuan Tran was fined $45,532.80 and Mr Dong $23,990.40.
In addition to the penalties, Judge Taglieri ordered Ms Xuan Tran and Mr Dong to complete online learning courses for employers and commission training on workplace relations laws.
Fair Work Ombudsman Anna Booth said the case served to highlight that all workers had the same rights, regardless of nationality or visa status.
“All employers in Australia need to pay their employees in line with Australia’s workplace laws – or they risk facing significant consequences,” Ms Booth said.
“Employers also need to be aware that taking action to protect vulnerable workers, including visa holders, and improve compliance in the fast food, restaurant and café sector are among our top priorities.”
The FWO said it had filed 138 litigations involving visa-holder workers, and secured $15 million in court-ordered penalties in visa-holder litigations, in the six financial years to June 2023.
The agency has an agreement with the Department of Home Affairs, called the Assurance Protocol, where visa holders with work rights can ask for help without fear of their visa being cancelled.
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