The Fair Work Ombudsman has commenced legal action against the operators of a dumpling restaurant in Newcastle for an alleged breach affecting vulnerable migrant workers.
Facing court are Kailiang Chen and Alex Du, who operate Dumpling Land in Wallsend as a partnership.
A Fair Work Inspector issued a Compliance Notice to Mr Chen and Mr Du in August 2023 after forming a belief that 28 workers were not paid in accordance with the Restaurant Industry Award 2020.
The inspector formed a belief that between June 2021 and April 2023 the workers were underpaid minimum wages, overtime and penalty rates under the Award.
Most of the workers were international students with some aged 24 and under at the time of employment.
The workers were engaged in full-time, part-time and casual roles as food and beverage attendants, kitchen hands and delivery drivers.
The Fair Work Ombudsman alleges Mr Chen and Mr Du, without a reasonable excuse, failed to fully comply with the Compliance Notice, which required them to calculate and back-pay the workers' entitlements.
It is alleged Mr Chen and Mr Du have back-paid some workers but back-payments to 12 workers remain outstanding.
Fair Work Ombudsman Anna Booth said the regulator would continue to enforce workplace laws and take businesses to court where lawful requests are not complied with.
"Where employers do not comply, we will take appropriate action to protect employees. A court can order a business to pay penalties and make payments to workers," Ms Booth said.
"Employers should also be aware that taking action to improve compliance in the fast food, restaurants and cafes sector and protecting visa holder workers are priorities for the FWO. Any employees with concerns about their pay or entitlements should contact us for free advice and assistance."
The FWO is seeking penalties in court for the alleged failure to comply with the Compliance Notice. Mr Chen and Mr Du each face a penalty of up $9,390.
The regulator is also seeking orders requiring the partners to fully comply with the Compliance Notice, including paying the alleged outstanding amounts to the workers and calculating and rectifying any further underpayments, plus interest and superannuation.
A hearing is listed in the Federal Circuit and Family Court in Sydney on 31 January 2025.
The regulator investigated the partnership as part of surprise inspections of Newcastle eateries in April 2023. Other results from those inspections have been published.
The Fair Work Ombudsman has filed 146 litigations against employers involving visa holder workers, and secured nearly $23 million in penalties in cases that have included visa holder workers, in the seven financial years to June 2024.
