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Underpaid $6,000 in just 5 months

UnderpaymentsDecember 10, 2015

Underpaid $6,000 in just 5 months (Last Updated On: December 10, 2015)

A Korean visa holder was underpaid more than $6,000 in just five months while employed at a Japanese restaurant in Sydney.

When the employee was first hired at Tenkomori Ramen House, the restaurant was owned by Kaby Holdings Pty Ltd and operated by director Ben York Hung Yau. However, in November 2014 ownership of the restaurant changed and Tenkomori Ramen Pty Ltd and sole director Mr Koji Aoki took over.

Investigations conducted by the Fair Work Ombudsman (FWO) found the employee was short changed $3,049 by Kaby Holdings Pty Ltd and then a further $3,290 when the restaurant changed ownership.

The employee was paid a flat rate of just $16.50 an hour which is not the correct minimum hourly rate. He was also not paid shift loadings for evening work or penalty rates for weekends, public holidays or overtime.

The FWO had previously issued Kaby Holdings Pty Ltd with a letter of caution regarding their concerns over the company’s failure to pay minimum hourly rates and the correct penalty rates.

Both companies have been asked to sign an Enforceable Undertaking, aimed at encouraging behavioral change and the company’s future compliance with federal workplace laws. Mr Yau and Mr Aoki have both agreed to reimburse the employee’s outstanding wages and entitlements.

Furthermore, the restaurant will bring in external professionals to audit their workplace compliance in 2016. They will also implement systems and processes to ensure they remain compliant.

If you would like to review your wage rates or check that you are meeting your employment obligations, call Employsure today on 1300 651 415. We can advise on all matters relating to minimum wage, leave entitlements and employee entitlements.

Sourced via the Fair Work Ombudsman

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