Federal court hits dining spots with $4 million fines for ‘robbing’ employees
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In a shocking revelation that has left many dismayed, some of the country's beloved dining establishments have been embroiled in a scandal at the heart of fair work practices.
The Federal Court has imposed a staggering $4 million in fines on popular Taiwanese restaurants and their senior staff for what has been described as a 'calculated scheme to rob employees' of their rightful earnings.
The case involved the well-known Din Tai Fung restaurants in Sydney and Melbourne, operated by DTF World Square, and another company, Selden Farlane Lachland Investments, which managed employees at the Emporium store.
These entities have been found guilty under The Fair Work Act 2009 for systematically exploiting vulnerable workers, many of whom were on student or employer-sponsored visas from Indonesia and China.
The Fair Work Ombudsman uncovered that the companies not only underpaid 17 employees by $157,025 under the Restaurant Industry Award 2020 but also went to great lengths to cover their tracks.
They created fake records to deceive authorities, a move that the Federal Court did not take lightly, as it heard the companies’ conduct was extremely serious and not just mere deliberate wrongdoing.
DTF World Square was penalised $1.99 million, while Seldon Farlane Lachlan Investments was penalised $1.89 million.
General Manager Hannah Handoko and HR Coordinator Sinthiana Parmenas of DTF World Square also faced personal fines of $92,232 and $105,084, respectively.
Justice Anna Katzmann condemned their actions as she found the two companies and senior management ‘deliberately deprived the employees of their legislated entitlements’ and disguised ‘their wrongdoing through the creation of a false set of records’.
‘It was deceitful and unscrupulous,’ Justice Katzman said.
‘It involved a calculated scheme to rob employees of their hard-earned wages and deceive the authorities.’
The workers affected by this scheme were mostly young and from overseas, with ten of them under 26 at the onset of their underpayment.
The court highlighted that the companies' actions were particularly egregious given the vulnerability of these employees, who relied on their employers for their visa status and livelihood.
Under the Protecting Vulnerable Workers Act 2017, the court deemed the contraventions serious due to the deliberate and systematic nature of the offences.
This law was introduced to safeguard employees from such exploitation, and the penalties, tenfold the usual fines, reflect the severity of the breach.
Fair Work Ombudsman Anna Booth stated that the penalties were the second-highest ever secured by the organisation, underscoring the seriousness of the offences.
‘We welcome these penalties that demonstrate the serious nature of the offending by the respondents in this matter,’ she said.
‘Their actions resulted in vulnerable migrant workers being underpaid hundreds of thousands of dollars.’
‘The court has characterised the conduct of Din Tai Fung as a calculated scheme to rob employees of their hard-earned wages.’
‘Lawful minimum rates apply to all employees in Australia, and they are not negotiable.’
‘All workers in Australia have the same rights, regardless of nationality and visa status.’
Last year, supermarket chain ALDI faced a $150-million claim in unpaid wages when it supposedly ‘systematically’ withheld from thousands of workers across the country.
The complaint claimed that employees were forced to work up to 30 minutes before the start of their shift without pay. You can read more about the story here.
What do you think about this story, members? Let us know in the comments below.
The Federal Court has imposed a staggering $4 million in fines on popular Taiwanese restaurants and their senior staff for what has been described as a 'calculated scheme to rob employees' of their rightful earnings.
The case involved the well-known Din Tai Fung restaurants in Sydney and Melbourne, operated by DTF World Square, and another company, Selden Farlane Lachland Investments, which managed employees at the Emporium store.
These entities have been found guilty under The Fair Work Act 2009 for systematically exploiting vulnerable workers, many of whom were on student or employer-sponsored visas from Indonesia and China.
Courts fined two Taiwanese restaurants in a ‘scheme to rob employees’. Credit: Shutterstock
The Fair Work Ombudsman uncovered that the companies not only underpaid 17 employees by $157,025 under the Restaurant Industry Award 2020 but also went to great lengths to cover their tracks.
They created fake records to deceive authorities, a move that the Federal Court did not take lightly, as it heard the companies’ conduct was extremely serious and not just mere deliberate wrongdoing.
DTF World Square was penalised $1.99 million, while Seldon Farlane Lachlan Investments was penalised $1.89 million.
General Manager Hannah Handoko and HR Coordinator Sinthiana Parmenas of DTF World Square also faced personal fines of $92,232 and $105,084, respectively.
Justice Anna Katzmann condemned their actions as she found the two companies and senior management ‘deliberately deprived the employees of their legislated entitlements’ and disguised ‘their wrongdoing through the creation of a false set of records’.
‘It was deceitful and unscrupulous,’ Justice Katzman said.
‘It involved a calculated scheme to rob employees of their hard-earned wages and deceive the authorities.’
The workers affected by this scheme were mostly young and from overseas, with ten of them under 26 at the onset of their underpayment.
The court highlighted that the companies' actions were particularly egregious given the vulnerability of these employees, who relied on their employers for their visa status and livelihood.
Under the Protecting Vulnerable Workers Act 2017, the court deemed the contraventions serious due to the deliberate and systematic nature of the offences.
This law was introduced to safeguard employees from such exploitation, and the penalties, tenfold the usual fines, reflect the severity of the breach.
Fair Work Ombudsman Anna Booth stated that the penalties were the second-highest ever secured by the organisation, underscoring the seriousness of the offences.
‘We welcome these penalties that demonstrate the serious nature of the offending by the respondents in this matter,’ she said.
‘Their actions resulted in vulnerable migrant workers being underpaid hundreds of thousands of dollars.’
‘The court has characterised the conduct of Din Tai Fung as a calculated scheme to rob employees of their hard-earned wages.’
‘Lawful minimum rates apply to all employees in Australia, and they are not negotiable.’
‘All workers in Australia have the same rights, regardless of nationality and visa status.’
Last year, supermarket chain ALDI faced a $150-million claim in unpaid wages when it supposedly ‘systematically’ withheld from thousands of workers across the country.
The complaint claimed that employees were forced to work up to 30 minutes before the start of their shift without pay. You can read more about the story here.
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