Fair Work Ombudsman Takes Legal Action Over Alleged $97,000 Underpayment of Migrant Workers
The ‘Bad’ in ‘the Good, the Bad and the Ugly’ from our 29 July 2025 podcast on Restraint of Trade Part 1.
The Fair Work Ombudsman (FWO) has initiated legal proceedings in the Federal Circuit and Family Court against the former operators of a Japanese restaurant in Castle Hill, north-western Sydney, over serious allegations of wage theft and record falsification.
The respondents in the matter are Kosu Group Pty Ltd, the former operator of Yakiniku Kosu, and its sole director and part-owner, Mr Sean Lee. The FWO alleges that the company and Mr Lee orchestrated the migration of two Filipino nationals to Australia on work visas and subsequently underpaid them a combined total of $97,621 between May 2019 and September 2020.
Allegations of Systemic Underpayment
According to the FWO, the workers, one employed as a food and beverage attendant and the other as a sous chef, were paid unlawfully low flat rates regardless of hours worked. Despite working up to 128 hours per fortnight, including split shifts, weekends, and public holidays, the food and beverage attendant was allegedly paid $800 net per fortnight, while the sous chef received $1,200 net per fortnight.
This payment structure allegedly resulted in significant underpayments across multiple entitlements under the Restaurant Industry Award 2010 and 2020, including:
- Minimum hourly rates
- Overtime
- Penalty rates
- Split-shift allowances
- Annual leave entitlements
The food and beverage attendant was allegedly underpaid $57,927.95, and the sous chef $39,693.48.
Record-Keeping Breaches and Misleading Conduct
In addition to wage violations, Kosu Group is accused of breaching record-keeping and payslip obligations under the Fair Work Act 2009. The FWO alleges that false or misleading time-and-wages records and payslips were provided to inspectors during the investigation, overstating the wages paid to the workers.
Mr Lee is alleged to have been directly involved in all contraventions.
Regulatory Response and Broader Implications
Fair Work Ombudsman Anna Booth condemned the alleged conduct, stating:
“Allegedly paying workers only about one-third of their total owed wages will not be tolerated. We are committed to taking action to protect vulnerable workers in this country and ensure that employers who breach the law are held to account.”
Ms Booth emphasised that accurate record-keeping is a legal requirement, and that protecting migrant workers and improving compliance in the hospitality sector remain key priorities for the regulator.
Legal Consequences and Next Steps
The FWO is seeking penalties in court, with Kosu Group Pty Ltd facing fines of up to $33,300 per breach, and Mr Lee up to $6,660 per breach. The alleged underpayments have since been rectified.
A directions hearing is scheduled in the Federal Circuit and Family Court in Sydney on 16 September 2025.
The Yakiniku Kosu restaurant has since closed.
This case forms part of a broader enforcement trend. Between July 2017 and June 2024, the FWO filed 146 litigations involving visa holder workers, securing nearly $23 million in penalties.
This content is general in nature and provides a summary of the issues covered. It is not intended to be, nor should it be relied upon, as legal or professional advice for specific employment situations.