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Former restaurant withheld $150k in payments from 457 visa worker

Adrian Flores
Adrian Flores
30 October 2020 1 minute readShare
Blue Moon Restaurant

An employee working on a 457 skilled work visa was revealed to have been underpaid more than $150,000 by the former operators of a restaurant in western Sydney.

The former operators of the Blue Moon Restaurant in Wentworthville, Rekha Thakadiyal Joseph and Jijo Thiruvankavil Esahac, withheld $153,352 from the employee which included for underpayment of ordinary hourly rates, overtime rates, and penalty rates for weekend and public holiday work owed under the Restaurant Industry Award 2010 as well as underpayments of various leave entitlements.

Ms Joseph and Mr Esahac also breached workplace laws by keeping false or misleading records and failing to issue payslips. Ms Joseph provided false documentation and information to the FWO.

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The Federal Circuit Court ordered Ms Joseph and Mr Esahac to pay penalties of $63,600 and $55,600, respectively, as well as pay interest on the back payments.

The underpayments were rectified in August this year, more than four years after the worker’s employment ended.

 

The operators employed the worker to work at the restaurant between December 2013 and April 2016, on a contractual salary of $54,000.

Ms Joseph, on behalf of the partnership, set up a bank account, opened in the employee’s name, and deposited amounts consistent with his contractual salary, more than $1,600 per fortnight, into the account.

However, for the majority of the worker’s employment, Ms Joseph and Mr Esahac maintained overall control of the account, retaining the bank card and making transactions reducing the account’s funds.

During the period, the employee was paid cash-in-hand wages equating to only $400 to $450 per week, despite generally working 11–12 hours per day, six days per week, firstly as a kitchen hand and then as a cook.

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Judge Douglas Humphreys said the conduct of the respondents was “particularly egregious, given that this was a clearly planned course of conduct which took place over a number of years and involved an extremely vulnerable employee.

“The Court considers the conduct of the [respondents] in exploiting, apparently, a member of their own ethnic community to be particularly concerning,” Judge Humphreys said.

“Those in the fast food, café and restaurant sector must understand that wage theft will not be tolerated by this Court. Wage theft is pernicious… it not only robs the worker concerned, but also financially disadvantages those decent and honest businesses who pay award rates of remuneration.”

Fair Work Ombudsman Sandra Parker said attempts to disguise the underpayment were unacceptable.

“Visa holders must receive the same minimum pay rates as every other employee in Australia and employers who blatantly underpay migrant workers will be found out,” Ms Parker said.

Former restaurant withheld $150k in payments from 457 visa worker
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Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

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