Employer found to underpay brother-in-law by over $150,000
The Fair Work Ombudsman was able to secure a hefty penalty against the operators of Hobart's 'Vina Yummy Kitchen,' a Vietnamese restaurant, with an almost $70,000 sum.
The legal action was filed against the husband-and-wife employer, Xuan Tran and Quang Manh Dong, for various violations, including the underpayment of Tran's brother-in-law by over $150,000.
Falsified records and underpayments
The Federal Circuit and Family Court imposed a $45,532.80 penalty on Tran and a $23,990.40 penalty on Dong, who operated as a partnership in Sandy Bay, Hobart.
The couple admitted to underpaying two employees - Tran's sister and her sister's husband, both Vietnamese nationals, a total of $175,000 from 2015 to 2019.
The underpayment involved Tran's sister being short-changed $18,683.69, and her sister's husband suffering an underpayment of $156,316.31. This breach spanned ordinary hours, public holidays, overtime rates, and leave entitlements, all falling under the Restaurant Industry Award 2010 and the Fair Work Act’s National Employment Standards.
Adding to records, Tran presented Fair Work inspectors with falsified records during their inquiry. Both she and Dong further violated record-keeping and pay slip laws.
Employer relocated workers from Vietnam
Compounding the issue, the husband-and-wife duo played a role in relocating the affected workers from Vietnam to Australia, acting as visa sponsors for Tran's sister. The Fair Work Inspectors were prompted to investigate after their office received requests for assistance from the underpaid workers.
Only when legal action was initiated by the Fair Work Ombudsman did Tran and Dong rectify the situation by fully backpaying the workers.
In response, the court stressed the necessity of imposing penalties as a deterrent, especially given the high-risk nature of contraventions in the cafes, restaurants, and takeaway foods industry concerning minimum standards outlined in the Awards and Act.
“The nature and extent of the [couple’s] conduct, which led to the contraventions largely reflected their naïveté, casual attitude and inexperience of the laws governing employment relationships in Australia,” the court said.
“[But] this does not excuse the [employer’s] contraventions,” it added. Along with the substantial penalties, the court mandated that Tran and Dong take online learning courses for employers and commission training on workplace relations laws.
